Stone Co. is considering the acquisition of equipment. To buy the equipment, the cost is $15,192. To lease the equipment, Stone must sign a noncancelable lease and make five payments of $4,000 each. The first payment will be paid on the first day of the lease. At the time of the last payment, Stone will receive title to the equipment. The present value of an ordinary annuity of $1 is as follows: Present Value No. of Periods 10% 12% 16% 1 0.909 0.893 0.862 2 1.736 1.690 1.605 3 2.487 2.402 2.246 4 3.170 3.037 2.798 5 3.791 3.605 3.274 The interest rate implicit in this lease is approximately
A. 10%.
B. 12%.
C. Between 10% and 12%.
D. 16%
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Stone Co. is considering the acquisition of equipment. To buy the equipment, the cost is $15,192. To lease the equipment, Stone must sign a ...” 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
Explain how the leadership styles and internal culture of the organization may have influenced the behavior of the employees within the organization.
Answers (1)
Which formula dictates that you pay more interest at the beginning of a loan and pay less and less interest as the debt is reduced? A. Adjusted balance method B. Accelerated balance C. The rule of 78s D. Average daily balance E.
Answers (1)
Which of the following statements is correct? A. The deduction for personal and dependency exemptions is not permitted in calculating the AMT. B. Therefore, in converting regular taxable income to AMTI, a positive adjustment is required. C.
Answers (1)
16. The journal entry to record the prior year's deferred Inflows: property taxes (those expected to be collected more than 60 days beyond year-end) as revenue in the current year would include: A) A debit to Revenues Control B) A debit to Deferred
Answers (2)
Pros and cons on outdoor advertising
Answers (1)
New Questions in Business
On March 15, Year 1, Kathleen Corp. adopted a plan to accumulate $1,000,000 by September 1, Year 5. Kathleen plans to make 4 equal annual deposits to a fund that will earn interest at 10% compounded annually.
Answers (1)
A natural monopoly's preemption of entry by other firms by exploiting its economies of scale is an example of
Answers (2)
The best way for a franchisee and franchisor to evaluate each other is Question options: for the potential franchisee to go to a sales presentation. for the potential franchisee to spend time working in a franchise location.
Answers (1)
Ronald Reagan believed that reducing income tax rates would A. raise economic well-being and perhaps even tax revenue. B. lower economic well-being, even though tax revenue could possibly increase. C. do little, if anything, to encourage hard work.
Answers (1)
Unlike niche-oriented shopping bots, broad-based shopping bots: select one: a. give pricing power to the retailers. b. search for prices for only one type of product. c. operate using a yellow pages type of model. d.
Answers (1)