Question

A piece of mining equipment can be bought for $100,000 cash or for $32,000 down and...

A piece of mining equipment can be bought for $100,000 cash or for $32,000 down and payments of $8940 per year for 15 years. What is the annual interest rate for the time payments?

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Your firm just bought a new piece of equipment for $80,000. The shipping cost was $10,000....
Your firm just bought a new piece of equipment for $80,000. The shipping cost was $10,000. The machinery will generate $38,000 of additional revenue per year. It has an economic life of 4 years and falls into the MACRS 3-year class. At the end of 4 years, the equipment can be sold for $15,000 No additional working capital will be needed. The tax rate is 30%. The cost of capital is 8%. A) what is the initial investment at time...
George bought a piece of equipment for $30,000. The equipment has a useful life of 4...
George bought a piece of equipment for $30,000. The equipment has a useful life of 4 years and a salvage value of $2,000 at the end of its useful life. Assume that the annual interest is 9%. 3. Calculate the book value at the end of year 3, using the DDB depreciation method. a. $2,800 b. $3,250 c. $3,750 d. $4,100
The shell Corp. owns a piece of petroleum drilling equipment that costs &100,000 and will be...
The shell Corp. owns a piece of petroleum drilling equipment that costs &100,000 and will be depreciated by Straight-line depreciation with B=$100,000, N=5 years, S=$0. There is a combined 40% tax rate. Shell will lease the equipment to others each year and receive $50,000 per year.  At the end of 3 years, the firm will sell the equipment for $30,000. If the firm requires a 10% after-tax rate of return, what is the PW of the investment?
a) Bubba bought a car for $60,000, putting down $20,000 cash and financing the remainder. How...
a) Bubba bought a car for $60,000, putting down $20,000 cash and financing the remainder. How much are his monthly car payments if he financed the car for 6 years and paid a nominal annual interest rate of 6 percent? b) How much will his payments be if he makes the payments at the beginning of each month?
It is estimated that a certain piece of equipment can save $22,000 per year in labor...
It is estimated that a certain piece of equipment can save $22,000 per year in labor and materials costs. The equipment has an expected life of five years and no market value. If the company must earn a 5% annual return on such investments, how much could be justified now for the purchase of this piece equipment? Draw a cash-flowing diagram from the company's viewpoint
It is estimated that a certain piece of equipment can save $22,000 per year in labor...
It is estimated that a certain piece of equipment can save $22,000 per year in labor and materials costs. The equipment has an expected life of five years and no market value. If the company must earn a 5% annual return on such investments, how much could be justified now for the purchase of this piece equipment? Draw a cash-flowing diagram from the company's viewpoint
Can you answer: The first cost of a certain piece of equipment is $60,000. It will...
Can you answer: The first cost of a certain piece of equipment is $60,000. It will have an annual operating cost of $30,000 and $6,000 salvage value after its 5-year life. At an interest rate of 10% per year, the capitalized cost of the equipment is closest to:    A.   -$323,710       B.   -$32,371    C.   -$ 448452    D.   -$522,710
What is the expected after-tax cash flow from selling a piece of equipment if Litchfield Design...
What is the expected after-tax cash flow from selling a piece of equipment if Litchfield Design purchases the equipment today for 50,000 dollars, the tax rate is 20 percent, the equipment is sold in 3 years for 9,000 dollars, and MACRS depreciation is used where the depreciation rates in years 1, 2, 3, 4, and 5 are 30 percent, 25 percent, 21 percent, 14 percent, and 10 percent, respectively? What is the expected after-tax cash flow from selling a piece...
"A company bought a piece of equipment for $302,000. The company is using the 7 year...
"A company bought a piece of equipment for $302,000. The company is using the 7 year MACRS property class to depreciate the asset for tax purposes. At the end of year 5, the company sold the equipment for $178,000. The tax rate is 29%. What is the tax that the company pays from the sale of the equipment?"
"A company bought a piece of equipment for $302,000. The company is using the 7 year...
"A company bought a piece of equipment for $302,000. The company is using the 7 year MACRS property class to depreciate the asset for tax purposes. At the end of year 5, the company sold the equipment for $178,000. The tax rate is 29%. What is the tax that the company pays from the sale of the equipment?"
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT