acc201wa4 - E 6-1 1. FV = $15,000 (2.01220) = $30,183 2. FV...

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E 6-1 1. FV = $15,000 (2.01220) = $30,183 2. FV = $20,000 (2.15892) = $43,178 3. FV = $30,000 (9.64629) = $289,389 4. FV = $50,000 (1.60103) = $80,052 E 6-3 1. PV = $20,000 (.50835) = $10,167 2. PV = $14,000 (.39711) = $5,560 3. PV = $25,000 (.10367) = $2,592 4. PV = $40,000 (.46651) = $18,660 E 6-8 1. PVA = $5,000 (3.60478) = $18,024 2. PVAD = $5,000 (4.03735) = $20,187 3. PV of $1 Payment i = 3% PV n First payment: $5,000 x .88849 = $ 4,442 4 Second payment 5,000 x .78941 = 3,947 8 Third payment 5,000 x .70138 = 3,507 12 Fourth payment 5,000 x .62317 = 3,116 16 Fifth payment 5,000 x .55368 = 2,768 20 Total $17,780 P 6-1 Machine A: PV = – $48,000 1,000 (6.71008) + 5,000 (.46319) PV = – $48,000 6,710 + 2,316 PV = - $52,394 Machine B:
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PV = – $40,000 4,000 (.79383) 5,000 (.63017) 6,000 (.54027) PV = - $40,000 - 3,175 - 3,151 - 3,242 PV = - $49,568 Esquire should purchase machine B. P 6-2
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This note was uploaded on 10/16/2011 for the course ACCOUNTING 201 taught by Professor Evans during the Spring '11 term at Thomas Edison State.

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acc201wa4 - E 6-1 1. FV = $15,000 (2.01220) = $30,183 2. FV...

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