Using the information provided, what transaction represents the best application of the present value of an annuity due of $1? A. Compass, Inc., signs a note of $32,000, which requires the company to pay back the principal plus interest in four years. B. Falcon Products leases an office building for 8 years with annual lease payments of $100,000 to be made at the beginning of each year. C. NYC Industries leases a car for 4 yearly annual lease payments of $12,000, where payments are made at the end of each year. D. Bahwat Company plans to deposit a lump sum of $100,000 for the construction of a solar farm in 4 years.

Question

13-10-2020
Business

contestada

Using the information provided, what transaction represents the best application of the present value of an annuity due of $1? A. Compass, Inc., signs a note of $32,000, which requires the company to pay back the principal plus interest in four years. B. Falcon Products leases an office building for 8 years with annual lease payments of $100,000 to be made at the beginning of each year. C. NYC Industries leases a car for 4 yearly annual lease payments of $12,000, where payments are made at the end of each year. D. Bahwat Company plans to deposit a lump sum of $100,000 for the construction of a solar farm in 4 years.

Respuesta :

Otras preguntas

While owning stocks can create strong profits for investors, what makes buying stocks riskier than buying bonds ?

6. Which of the following is true about Anorexia Nervosa? It's not as serious as bulimia OIt usually goes away on its own OIt's serious but not life threatening

How was marjane satrapi perceived in Iran

Explain the difference between the following two terms as the swipe interprets them? putting on airs and putting up a good front

The passage overall suggests that the narrator is the kind of person who O dismisses the idea that people in the present can learn from the past O always follow

WILL MARK BRAINLIEST (CORRECT ANSWER) There are 3 students to 1 adult on a field trip. You need to find the number of adults needed for 24 students. What would

What is the primary purpose of the European Union quizlet?

Consider the balanced chemical equation 4Al(s) + 3O2 (g) -> 2Al₂O3 (s) What mole ratio would you use to calculate how many moles of oxygen gas would be neede

I need help finding the answer for number 17!!

Describe your historical and current element in detail. Use complete sentences in your responses. . Use academic vocabulary in your responses. . Tell me where

Parrain Parrain · Answer 1 · 2020-10-13T19:14:20+02:00

Answer: B. Falcon Products leases an office building for 8 years with annual lease payments of $100,000 to be made at the beginning of each year.

Explanation:

An Annuity refers to an equal series of cashflows made at constant intervals. For instance, paying $100,000 per year for 8 years.

There are two types of Annuities; Ordinary and Annuity Due. Annuity Due refers to annuities that are paid at the beginning of each year whereas Ordinary is paid at the end.

Falcon will be paying $100,000 at the beginning of the year so this is an Annuity due and so will be the best application of the present value of an annuity due of $1.