Ask questions and get helpful answers.
Ask a New Question
  1. Questions
  2. St. line depreciation & salvage value

A USED CONCRETE PUMPING TRUCK CAN BE PURCHASED FOR 125,000 DOLLARS. THE OPERATING COST ARE EXPECTED TO BE 65,000 DOLLARS AT THE FIRST YEAR & INCREASE BY 5% EACH YAER THEREAFTER. AS A RESULT OF THE PURCHASE, THE COMPANY WILL SEE IN INCREASE IN INCOME OF 100,000 DOLLARS THE FIRST YEAR & 5% MORE EACH SUBSEQUENT YEAR. THE COMPANY USES STRAIGHT LINE DEPRECIATION. THE TRUCK WILL HAVE USEFUL LIFE OF 5 YEARS & NO SALVAGE VALUE. MANAGEMENT WOULD LIKE TO SEE A 10% RETURN ON ANY INVESTMENT. THE COMPANY TAX RATE IS 28%

1. What is the compound interest factor used to determine present value in year number 5?
2. based on the information truck should be purchased or leased
3. taxes due at the end of year 5 ?
4. taxable income in year 5?
5. required sales price to receive a 10% ROR

thanks a lot in advance

  1. 👍
  2. 👎
  3. 👁
  4. ℹ️
  5. 🚩
rk
2 answers

  1. For future reference, please do not use capital letters (upper case) because in computer language, it is impolite and for us volunteer teachers it is much more difficult to read. Therefore most of us won't even attempt to read it.

    Sra

    1. 👍
    2. 👎
    3. ℹ️
    4. 🚩
    SraJMcGin

  2. thanks a lot for your advice
    i will correct my mistake

    Thanking you once again

    1. 👍
    2. 👎
    3. ℹ️
    4. 🚩
    rk

Answer this Question

Related Questions

  1. math

    which of the following expressions shows the equation to use in the finding the dimensions of a cube N by N by N with a volume 125 1) n3=125 2) n2=125 3) 3n=125 4) n=125/3 5) not enought info given need help with this problem!!

  2. math

    The yearly cost in dollars, y, at a video game arcade based on total game tokens purchased, x, is y = x + 60 for a member and y = x for a nonmember. Explain how the graph of a nonmember’s yearly cost will differ from the graph of a member’s yearly

  3. math

    A airplane crosses the Atlantic Ocean (3000 miles) with an airspeed of 600 miles per hour. The cost C (in dollars) per passenger is given by... C(x)= 150 + x/20 + 36,000/x Where x is the ground speed (airspeed plus or minus wind). a. What is the cost per

  4. Math-please check

    7. The cost for a business to make greeting cards can be divided into one-time cost (e.g., a printing machine) and repeated costs (e.g., ink and paper). Suppose the total cost to make 300 cards is $900.00, and the total cost to ma 650 cards is $1,600.00.

  5. calculus

    The total cost (in dollars) of producing x college textbooks is C(x) = 50x+ 11,000 What is the fixed cost? 11,000 What is the marginal cost? What is the total cost of producing 700 books? 34,000 books? What is the average cost when 700 books are produced?

  6. econ

    A country has a population of 20,000 people and a GDP of 50 million dollars. What is the per capita GDP of the country? a.) 2.5 million dollars b.) 250 dollars c.) 2,500 dollars d.) 100 million dollars

  7. Merchandize inventory

    MJ Department Store expects to generate the following sales figures for the next three months: July August September Expected sales $476,000 $558,000 $604,000 MJ's gross profit rate is 44% of sales dollars. At the end of each month, MJ wants a merchandise

  8. Economics

    When Burton Cummings graduated with honors from the Canadian Trucking Academy, his father gave him a $350,000 tractor-trailer rig. Recently, Burton was boasting to some fellow truckers that his revenues were typically $25,000 per month, while his operating

  9. Math/Piecewise functions

    Write a piecewise definition for the tax due T(x) on an income of x dollars When x

  10. statistics

    A line of regression y = -1,240 + 7.07x is the best fit line for a set of data comparing airfare with 30 days notice and one-day notice. Find the best predicted cost of a ticket purchased one day in advance given that the cost of the ticket is $300 if

Still need help?

You can ask a new question or browse existing questions.