Dayton Company is considering investing in an annuity contract that will return $45,000 annually at the end of each year for 15 years. What amount should Dayton Company pay for this investment if it earns a 5% return?
Answer to relevant QuestionsNolasko Enterprises earns 8% on an investment that pays back $90,000 at the end of each of the next 6 years. What is the amount Nolasko Enterprises invested to earn the 8% rate of return?Phil Emley owns a garage and is contemplating purchasing a tire retreading machine for $18,000. After estimating costs and revenues, Phil projects a net cash flow from the retreading machine of $3,300 annually for 8 years. ...Julie Vopat wishes to invest $18,000 on July 1, 2014, and have it accumulate to $50,000 by July 1, 2024. Use a financial calculator to determine at what exact annual rate of interest Julie must invest the $18,000.Upson Corporation uses the equity method to account for its ownership of 30% of the common stock of Holland Packing. During 2014, Holland reported a net income of $80,000 and declares and pays cash dividends of $10,000. What ...In its first year of operations, Mallein Corporation purchased available-for-sale stock securities costing $72,000 as a long-term investment. At December 31, 2014, the fair value of the securities is $69,000. Prepare the ...
Post your question