Benning Manufacturing Company is negotiating with a customer for the lease of a large machine manufactured by Benning. The machine has a cash price of $720,000. Benning wants to be reimbursed for financing the machine at a 12% annual interest rate over the five-year lease term. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Determine the required lease payment if the lease agreement calls for 10 equal semiannual payments beginning six months from the date of the agreement. 2. Determine the required lease payment if the lease agreement calls for 20 equal quarterly payments beginning immediately. 3. Determine the required lease payment if the lease agreement calls for 60 equal monthly payments beginning one month from the date of the agreement. The present value of an ordinary annuity factor for n
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Ответ:
1. Determine the required lease payment if the lease agreement calls for 10 equal semiannual payments beginning six months from the date of the agreement.
we need to use the present value formula for an ordinary annuity
PV = payment x annuity factor (6%, 10 periods)
PV = $720,000annuity factor = 7.3601payment = PV / annuity factor = $720,000 / 7.3601 = $97,824.76
2. Determine the required lease payment if the lease agreement calls for 20 equal quarterly payments beginning immediately.
we need to use the present value formula for an annuity due
PV = payment x annuity due factor (3%, 20 periods)
PV = $720,000annuity due factor = 15.3238payment = PV / annuity due factor = $720,000 / 15.3832 = $46,985.73
3. Determine the required lease payment if the lease agreement calls for 60 equal monthly payments beginning one month from the date of the agreement.
we need to use the present value formula for an ordinary annuity
PV = payment x annuity factor (1%, 60 periods)
PV = $720,000annuity factor = 44.95504payment = PV / annuity factor = $720,000 / 44.95504 = $16,016
Ответ:
D. Employees would be more motivated
Explanation:
The introduction of new technology into production process has so many benefits such as:
1. Productivity would increase: It is known that machines work faster and more accurately than man. This will increase the output of the company
2. Achieve a competitive advantage: If a producer introduces new technology to his work unlike his competitors that still uses old technology, he has more advantage over the market of the product produced because of improved standard of the product and increase in output.
3. Decrease in labor cost: The cost of using labor in production process is higher compared to the use of machines. If 5 labors can produce 100 units of goods in 5 hours, then, one machine should be able to produce more or equivalent in the same time
The disadvantage of introducing new technology is there's no motivation for workers. Salary is one of the major motivation of workers. Salaries of workers won't increase because of new technology, rather, it may decrease because they now perform less work in the production process.
D. Employees would be more motivated