Present value, amount of $1, and ordinary annuity information are presented below. All values are for...

 

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Present value, amount of $1, and ordinary annuity information are presented below. All values are for four periods with an interest rate of 8%. Amount of $1 Present value of $1 Amount of an ordinary annuity of $1 .36 0.74 4.51 Present value of an ordinary 3.31 annuity of $1 Jones wants to accumulate $50,000 by making equal contributions at the end of each of 4 succeeding years. Which equation would be used to compute Jones's annual contribution to achieve the $50,000 goal at the end of the fourth year? Tam Co. is negotiating for the purchase of equipment that would cost P100,000, with the expectation that P20,000 per year could be saved in after-tax cash costs if the equipment is acquired. The equipment's estimated useful life is 10 years, with no residual value, and would be depreciated by the straight-line method. Tam's predetermined minimum desired rate of return is 12%. Present value of an annuity of 1 at 12% for 10 periods is 5.65. Present value of 1 due in 10 periods at 12% is .322. Net present value is? Present value, amount of $1, and ordinary annuity information are presented below. All values are for four periods with an interest rate of 8%. Amount of $1 Present value of $1 Amount of an ordinary annuity of $1 .36 0.74 4.51 Present value of an ordinary 3.31 annuity of $1 Jones wants to accumulate $50,000 by making equal contributions at the end of each of 4 succeeding years. Which equation would be used to compute Jones's annual contribution to achieve the $50,000 goal at the end of the fourth year? Tam Co. is negotiating for the purchase of equipment that would cost P100,000, with the expectation that P20,000 per year could be saved in after-tax cash costs if the equipment is acquired. The equipment's estimated useful life is 10 years, with no residual value, and would be depreciated by the straight-line method. Tam's predetermined minimum desired rate of return is 12%. Present value of an annuity of 1 at 12% for 10 periods is 5.65. Present value of 1 due in 10 periods at 12% is .322. Net present value is?

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1 To compute Joness annual contribution to achieve the 50000 goal at the end of the fourth year you ... View the full answer