On January 2, 2021, Ma, Inc. signed a 20-year noncancelable lease for a heavy duty drill press. The lease stipulated annual payments of $300,000 starting at the beginning of the first year, with title passing to Ma at the expiration of the lease. Ma treated this transaction as a finance lease. The drill press has an estimated useful life of 15 years, with no salvage value. Ma uses straight-line amortization for all of its plant assets. Aggregate lease payments were determined to have a present value of $2,809,476, based on implicit interest of 10%. In its 2021 income statement, what amount of amortization expense should Ma report from this lease transaction?
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Business, 22.06.2019 10:40, meillsss
Parks corporation is considering an investment proposal in which a working capital investment of $10,000 would be required. the investment would provide cash inflows of $2,000 per year for six years. the working capital would be released for use elsewhere when the project is completed. if the company's discount rate is 10%, the investment's net present value is closest to (ignore income taxes) ?
Answers: 1
Business, 22.06.2019 15:40, Zachary429
Brandt enterprises is considering a new project that has a cost of $1,000,000, and the cfo set up the following simple decision tree to show its three most likely scenarios. the firm could arrange with its work force and suppliers to cease operations at the end of year 1 should it choose to do so, but to obtain this abandonment option, it would have to make a payment to those parties. how much is the option to abandon worth to the firm?
Answers: 1
On January 2, 2021, Ma, Inc. signed a 20-year noncancelable lease for a heavy duty drill press. The...
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