You are considering two home security companies for your new house. The first company offers free installation and equipment, but will charge you $570.00 per year forever. The second company charges $851.00 for installation, but will charge you $229.00 per year forever. Assume that payments are at the END of the year. Your personal interest rate is 4.00% per year, and you want to evaluate each proposal.
What is the present value (PV) of the free installation? What is the PV of the paid installation?
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “You are considering two home security companies for your new house. The first company offers free installation and equipment, but will ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Rowdy's Restaurants Cash Flow ($ in millions) Cash received from: Customers $ 1,800 Interest on investments 200 Sale of land 100 Sale of Rowdy's common stock 600 Issuance of debt securities 2,000 Cash paid for: Interest on debt $ 300 Income tax 80
Answers (1)
A company is considering purchasing a machine for $21,000. The machine will generate an after-tax net income of $2,000 per year. Annual depreciation expense would be $1,500. The machine has no salvage value.
Answers (1)
True or false an advantage of the weighted average inventory method is that it tends to smooth out erratic changes in costs.
Answers (1)
More often than not, policymakers find it useful to employ monetary and fiscal policies in
Answers (1)
Where did louanne garfinkle work before coming to global enterprises?
Answers (1)
New Questions in Business
The Halpert Group produces a single product selling for $ 20 per unit. Variable costs are $ 2 per unit and total fixed costs are $ 10,000. What is the contribution margin ratio?
Answers (1)
Virginia supply offers their customers trade credit with terms 2/15, net 30. this implies that:
Answers (1)
Helga wrote this citation on her paper. "Global Sea Turtle Populations Decline." Sea Turtle Restoration Project. 26 May 2002. Web. 22 Sept. 2006. This best represents a A. book citation. B. magazine citation. C. web page citation. D.
Answers (2)
What were the two main opposing views of Adam Smith and Karl Marx?
Answers (1)
A company plans to issue new Preferred Stock that pays 6% on the Par Value of $25. Similar preferred stocks are current selling in the market for Pp = $28.
Answers (1)