Butler corporation is considering the purchase of new equipment costing $30,000. the projected annual after-tax net income from the equipment is $1,200, after deducting $10,000 for depreciation. the revenue is to be received at the end of each year. the machine has a useful life of 3 years and no salvage value. butler requires a 12% return on its investments. the present value of an annuity of $1 for different periods follows:

Net annual cash flows
1,200+10,000=11,200

Net present value is
PV of annual cash flows-project investment
11,200×2.4018−30,000=(3,100)

Secured loans are protected by collateral security. examples: title loans where the borrower uses the car title as collateral security interest rates are lower and repayments are longer therefore risk is low as a collateral security is given as guarantee to the bank in case of failure to pay the loanunsecured loans are not protected by collateral security but it is given on the creditworthiness of the borrower, trusting that she/he will pay on time. examples; payday loans is a short term loan where the borrower lends money from the bank and pays is back when the borrower receives his/her wages.interest rates are high and repayments are shorter. but the risk is high as no collateral security is given as a guarantee to the bank for payment of the loan

Answerrecover no damages from the driver;