as been used for the hine is January 1 2013 Pertinent facts regarding 150000

As been used for the hine is january 1 2013 pertinent

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as been used for the hine is January 1, 2013. Pertinent facts regarding $150,000 $190,000 8 5 $20,000 $25,000 $0.25 $0.19 $25,000 $24,000 $68,000 $12,000 $22,000 $30,000 $10,000 500,000 500,000 40% and gains/losses associated pt for initial investment. sociated with the disposal of period 0, 01 January 2013) h 5, inclusive) al time, 31 December 2017) Keep Existing Machine Purchase New Machine
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n this basis the new machine 2013) $10,000 $190,000 $68,000 $150,000 $20,000 8 $16,250 $48,750 $101,250 $68,000 $33,250 $13,300 $81,300 $118,700 2017) $18,000 $600 $16,250 $190,000 $25,000
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5 $33,000 $16,750 $6,700 $25,300 of period 5: Old New $150,000 $190,000 $130,000 $165,000 $20,000 $25,000 $12,000 $22,000 ($8,000) ($3,000) $3,200 $1,200 $15,200 $23,200 $8,000 $30,000 $40,000 $10,000 $18,000 s' worth) are both of information are gain/loss on disposal, rs regardless of the ($118,700)
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$25,300 5 $126,500 $18,000 $25,800
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he first payment on December 31, 2000. he first payment on January 1, 2000, the date the contract was signed. e 45 percent income tax bracket, calculate your answer for requirement 1. ember 31, 2012 @ 6% annual return = $62,034,260,760
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Exercise 12-31: Cash Receipts Frequency and Present-Value C Background Assume that you are about to sell property (a vacant parcel of real estat use for. The net-of-sales-commission selling price of the property is $50 transaction over a 20-year period and have told the buyer that you expe the transaction. The buyer has asked you for a payments schedule und Data sales price (present value) = $500,000 required pre-tax return = 12.00% financing period (years) = 20 # weekly payments per year = 52 # montly payments per year = 12 # quarterly payments per year = 4 # annual payments per year = 1 Requirements 1. What will be your periodic cash receipt, to earn a 12% return, if pay the purchaser: a. at the end of each week b. at the end of each month c. at the end of each quarter d. at the end of each year Solutions Periodic Cash Total per 1. Receipt Year a. Weekly Payments $1,269 $66,004 b. Monthly Payments $5,505 $66,065 c. Quarterly Payments $16,556 $66,223 d. Annual Payments $66,939 $66,939 For example, for 1a, the weekly receipt of $1,269 was calc =PMT(C11/C13,C12*C13,C10 2. What general conclusion can you draw based on the calculations abo Note: The PMT function built into Excel was used to calculate th
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2. Money has a time value. As such, cash received earlier (e.g., on a qu basis) has a greater value to the receipient (who, for example, could i when payments are made more frequently, a lower annual amount wi above, total cash paid/received over the 20-year period is lowest whe frequently (in this case, weekly); total cash paid/received is greatest w frequently (in this case, annually). Note the impact on total cash rece life of the 20-year contract.
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Consequnces te) you own but otherwise have no use 00,000. You are willing to finance this ect to earn a 12% pre-tax return on der serveral alternatives. 0.0023076923 yments are received from the Total Over 20- Year Period $1,320,087 $1,321,303 $1,324,470 $1,338,788 culated as follows: 0)*-1 ove in (1)? he Periodic Cash Receipts.
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uarterly basis rather than an annual invest those receipts). Therefore, ill occur. As seen from the data en payments are made most when payments are made least eipts/payments over the
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Exercise 12-32: Value of Accelerated Depreciation Background Freedom Corporation acquired a fixed asset for $100,000. Its estimated life wa estimated salvage value. Assume a relevant discount rate of 8%, and an incom Problem Information Cost of new asset $100,000 Estimated life of asset, in years 4 Estimated salvage value $0 Discount rate 8%
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