Aggie Company is going to trade-in an old piece of equipment for new equipment. The following is information concerning the purchase: List Price: $65,000 Term: 5 years Payments: Quarterly Down Payment: $6,000 Interest Rate: Trade-in value 10,000 8% Determine the amount of the quarterly payment.
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- 1) A certain property was offered on an instalment basis wherein the buyer needs to pay 15% of the cash price as down payment and remaining balance be paid by a beginning of a quarter payments for a period of 5 years. First quarterly payment amounts to P 175,000 and happens six months after purchased. Quarterly payments increases an amount of P1, 200 every quarter thereof until the last payment with an interest rate of 8% effective. a) What was the cash price of the said property? b) What equivalent equal-end of a monthly payments would the remaining balance be for just a period of four years, assuming the first monthly payment happens after a year of purchased? c) Find the sum of all of the payments.A certain piece of equipment has a list price of $120,000. The manufacturer offers two options for paying for the equipment. Option A: An initial down payment of $20,000 plus additional payments of $20,000 per year at the end of each of the next six years.Option B: A single payment of $108,000 at the time of purchase (i.e., a 10% discount for paying in cash).(a) What annual interest rate would you be paying if you selected Option A? (b) What is the implicit annual interest rate associated with the financing offered in Option A when compared against the discount offered in Option B?A property can be purchased in cash by $570000 or through an equivalent plan that consists of a down payment of 10% of this amount, plus six monthly installments of $ 2,000.00 paid directly to the construction company, which works with monthly interest of 3.00%, after which the debit balance is financed by a financial agent in 20 years, at the rate of 0.80% p.m., with semiannual payments of $5,000.00 simultaneously with equal monthly installments, with no grace period. Determine the amount of each monthly installment to be paid to the financial agent.
- On September 1, 2021, Confused Company purchased a machine. The purchase agreement required Confuse to pay an initial fee payment of P700,000 plus four P300,000 payments due every four (4) months, the first payment due December 31, 2021. The market interest rate is 12%. The present and future value tables at 4% for four (4) periods were as follows: Present value of P 1, 0.85; Present value of an ordinary annuity of P1, 3.63; Future value of P 1, 1.17, Future value of an ordinary annuity of P1, 4.25. What is the fair value of the note on December 31, 2021?A fully automatic chucker and bar machineis to be purchased for $45,000. The money will beborrowed with the stipulation that it be repaid withsix equal end-of-year payments at 12% compoundedannually. The machine is expected to provide annualrevenue of $13,000 for six years and is to be depreciated by the MACRS seven-year recovery period. Thesalvage value at the end of six years is expected tobe $4,000. Assume a marginal tax rate of 35% and aMARR of 15%.(a) Determine the after-tax cash flow for this assetover six years.(b) Determine whether the project is acceptable onthe basis of the IRR criterion.A commercial building can be acquired at a downpayment of P 500,000 and a yearly payment of P 100,000 at the end of each year for a period of 10 years starting at the end of five years from the date of purchase. If money is worth 12% compounded yearly, what was the cash price of the commercial bldg?
- ABC Marketing sold an item worth 200,000 for 250,000. As agreed 20,000 will the down payment while the balance will be evidence buy a noninterest bearing note with an implied interest rate of 9% to be paid annually within 5 years. What is the amortization schedule for the payments?Grummet Company is acquiring a new wood lathe with a cash purchase price of $80,000. The Wood Master Industries (the manufacturer) has agreed to accept $23,500 at the end of each of the next 4 years. Based on this deal, how much interest will Grummet pay over the life of the loan?A. $94,000B. $80,000C. $23,500D. $14,0009. A granite company is planning to buy a fully automated granite cutting machine. If it is purchased under down payment, the cost of the machine is ETB 16,00,000. If it is purchased under installment basis, the company has to pay 25% of the cost at the time of purchase and the remaining amount in 10 annual equal installments of ETB 2,00,000 each. Suggest the best alternative for the company using the present worth basis at i = 18%, compounded annually.
- On January 1, 2020, Mya & Co, sold a machinery and immediately leases it back for a period of 4 years. Remaining useful life of the machinery is 10 years. Selling price is P3,000,000. Carrying amount of the machinery is P2,250,000. Annual rental is P400,000 payable every December 31, starting December 31, 2020. Implicit rate is 10% and PV factor for ordinary annuity at 10% for 4 periods is 3.169865. If the fair value of the sold and leased asset is P2,800,000, what amount of gain/loss related to the right transferred shall be recognized by the seller-lessee? a. 340,225 b. 209,775 c. 550,000 d. NoneOn January 1, 2020, sold a machinery and immediately leases it back for a period of 4 years. Remaining useful life of the machinery is 10 years. Selling price is P3,000,000. Carrying amount of the machinery is P2,250,000. Annual rental is P400,000 payable every December 31, starting December 31, 2020. Implicit rate is 10% and PV factor for ordinary annuity at 10% for 4 periods is 3.169865. If the fair value of the sold and leased asset is P3,200,000, what amount of gain/loss related to the right transferred shall be recognized by the seller-lessee?On January 1, 2020, Tamia & Co, sold a machinery and immediately leases it back for a period of 4 years. Remaining useful life of the machinery is 10 years. Selling price is P3,000,000. Carrying amount of the machinery is P2,250,000. Annual rental is P400,000 payable every December 31, starting December 31, 2020. Implicit rate is 10% and PV factor for ordinary annuity at 10% for 4 periods is 3.169865. If the fair value of the sold and leased asset is P3,200,000, what amount of gain/loss related to the right transferred shall be recognized by the seller-lessee? a. Zero b. 950,000 c. 435,796 d. 514,204
