subject
Business, 12.02.2020 00:37 taufajane3887

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?

ansver
Answers: 1

Another question on Business

question
Business, 22.06.2019 06:40
Vintage fun reproduces oldminusfashioned style roller skates and skateboards. the annual production and sales of roller skates is 950 units, while 1,750 skateboards are produced and sold. the company has traditionally used direct labor hours to allocate its overhead to products. roller skates require 2.5 direct labor hours per unit, while skateboards require 1.25 direct labor hours per unit. the total estimated overhead for the period is $114,300. the company is looking at the possibility of changing to an activityminusbased costing system for its products. if the company used an activityminusbased costing system, it would have the following three activity cost pools: the overhead cost per skateboard using the traditional costing system would be closest to: a. $9.31. b. $65.31. c. $25.05. your answer is not correct.d.
Answers: 2
question
Business, 22.06.2019 16:20
Stosch company's balance sheet reported assets of $112,000, liabilities of $29,000 and common stock of $26,000 as of december 31, year 1. if retained earnings on the balance sheet as of december 31, year 2, amount to $74,000 and stosch paid a $28,000 dividend during year 2, then the amount of net income for year 2 was which of the following? a)$23,000 b) $35,000 c) $12,000 d)$42,000
Answers: 1
question
Business, 22.06.2019 17:50
The management of a supermarket wants to adopt a new promotional policy of giving a free gift to every customer who spends > a certain amount per visit at this supermarket. the expectation of the management is that after this promotional policy is advertised, the expenditures for all customers at this supermarket will be normally distributed with a mean of $95 and a standard deviation of $20. if the management wants to give free gifts to at most 10% of the customers, what should the amount be above which a customer would receive a free gift?
Answers: 1
question
Business, 22.06.2019 18:00
When peter metcalf describes black diamond’s manufacturing facility in china as a “greenfield project,” he means that partnered with a chinese company to buy the plant . of all market entry strategies, this one carries the lowest risk. because black diamond manufactures its outdoor sports products outside the united states, what risks must its managers be aware of?
Answers: 1
You know the right answer?
You are considering two home security companies for your new house. The first company offers free in...
Questions
question
English, 22.09.2021 20:00
question
Mathematics, 22.09.2021 20:00
question
Biology, 22.09.2021 20:00
question
Mathematics, 22.09.2021 20:00
question
Mathematics, 22.09.2021 20:00