Lights, Camera, and More sells filmmaking equipment. The company offers three purchase options: (1) pay full cash today, (2) pay one-half down and the remaining one-half plus 10% in one year, or (3) pay nothing down and the full amount plus 15% in one year. George isconsidering buying equipment from Lights, Camera, and More for $145,000 and therefore has the following payment options:РaуmentToday$145,000Payment inOne YearTotalOption 1Option 2Option 3Рауment$ 145,000152,250166,75072,50079,750166,750Required:1-a. Assuming an annual discount rate of 12%, calculate the present value and the total cost. (FV of $1, PV of $1. EVA of $1., and PVA of$1) (Use appropriate factor(s) from the tables provided. Round your answers to 2 decimal places.)PaymentTodayPresent Value ofTotal Present ValuePayment in One Year(or Total Cost)Option 1Option 2Option 31-b. Which option's cost has the lowest present value?Option 1O Option 2O Option 3

Answered: Image /qna-images/answer/a6907a20-3cf1-4662-b66d-fea2e7be8134.jpg

Lights, Camera, and More sells filmmaking equipment. The company offers three purchase options: (1) pay full cash today, (2) pay one- half down and the remaining one-half plus 10% in one year, or (3) pay nothing down and the full amount plus 15% in one year. George is considering buying equipment from Lights, Camera, and More for $145,000 and therefore has the following payment options: Payment Today $145,000 72,500 Payment in Total One Year Option 1 Option 2 Option 3 Payment $145,000 152,250 166,750 79,750 166,750 Required: 1-0. Assuming an annual discount rate of 12%, calculate the present value and the total cost. (EV of $1, PV of $1. EVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Round your answers to 2 decimal places.) Payment Today Present Value of Payment in One Year Total Present Value (or Total Cost) Option 1 Option 2 Option 3

Lights, Camera, and More sells filmmaking equipment. The company offers three purchase options: (1) pay full cash today, (2) pay one- half down and the remaining one-half plus 10% in one year, or (3) pay nothing down and the full amount plus 15% in one year. George is considering buying equipment from Lights, Camera, and More for $145,000 and therefore has the following payment options: Payment Today $145,000 72,500 Payment in Total One Year Option 1 Option 2 Option 3 Payment $145,000 152,250 166,750 79,750 166,750 Required: 1-0. Assuming an annual discount rate of 12%, calculate the present value and the total cost. (EV of $1, PV of $1. EVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Round your answers to 2 decimal places.) Payment Today Present Value of Payment in One Year Total Present Value (or Total Cost) Option 1 Option 2 Option 3

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 15RE: GameDay sells recreational vehicles along with secure parking storage to customers. Game Day sells...

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Lights, Camera, and More sells filmmaking equipment. The company offers three purchase options: (1) pay full cash today, (2) pay one-half down and the remaining one-half plus10% in one year, or (3) pay nothing down and the full amount plus 15% in one year. George is considering buying equipment from Lights, Camera, and More for $150,000 and therefore has the following payment options: Payment Today Payment in One Year Total Payment Option 1 $150,000 $ 0 $150,000 Option 2 75,000 82,500 157,500 Option 3 0 172,500 172,500 Required:Assuming an annual discount rate of 11%, calculate which option’s cost has the lowest present value.
Lights, Camera, and More sells filmmaking equipment. The company offers three purchase options: (1) pay full cash today, (2) pay one- half down and the remaining one-half plus 10% in one year, or (3) pay nothing down and the full amount plus 15% in one year. George is considering buying equipment from Lights, Camera, and More for $130,000 and therefore has the following payment options: Payment Payment in One Option 1 Option 2 Option 3 Required: Today $130,000 Year $ 0 Total Payment $130,000 65,000 0 71,500 149,500 136,500 149,500 1-a. Assuming an annual discount rate of 12%, calculate the present value and the total cost. 1-b. Which option's cost has the lowest present value? Complete this question by entering your answers in the tabs below. Req 1A Req 1B Assuming an annual discount rate of 12%, calculate the present value and the total cost. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places.) Payment…
ces Lights, Camera, and More sells filmmaking equipment. The company offers three purchase options: (1) pay full cash today, (2) pay one- half down and the remaining one-half plus 10% in one year, or (3) pay nothing down and the full amount plus 15% in one year. George is considering buying equipment from Lights, Camera, and More for $120,000 and therefore has the following payment options: Option 1 Option 2 Option 3 Payment Payment in One Today Year Req 1A $ 120,000 60,000 0 Required: 1-a. Assuming an annual discount rate of 11%, calculate the present value and the total cost. 1-b. Which option's cost has the lowest present value? Option 1 Option 2 Option 3 Complete this question by entering your answers in the tabs below. $0 66,000 138,000 Req 1B Total Payment $ 120,000 126,000 138,000 Assuming an annual discount rate of 11%, calculate the present value and the total cost. Note: Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places. (FV of $1, PV of $1,…
A small businessman is about to acquire a machine whose price is $ 15,000 with VAT included. If the cash purchase obtains a 15% discount, if you purchase it on credit you must pay an initial installment equivalent to 25% and the balance in six installments, with a grace period of one month without interest payment and the rest with a 3.8 % monthly. It asks:to. Payment in cash,b. The installment to pay on creditc. The total amount paid on credit
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