Present Value MCQs

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On July 1, year 1, James Rago signed an agreement to operate as a franchisee of Fast Foods, Inc. for an initial franchise fee of $60,000. Of this am...






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On November 1, year 1, a company purchased a new machine that it does not have to pay for until November 1, year 3. The total payment on November 1,...






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For which of the following transactions would the use of the present value of an annuity due concept be appropriate in calculating the present value...






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Jole Co. lent $10,000 to a major supplier in exchange for a noninterest-bearing note due in three years and a contract to purchase a fixed amount of...






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Leaf Co. purchased from Oak Co. a $20,000, 8%, five-year note that required five equal annual year-end payments of $5,009. The note was discounted t...






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Crown Corporation has agreed to sell some used computer equipment to Bob Parsons, a company employee, for $5,000. Crown and Parsons have been discuss...






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Crown Corporation has agreed to sell some used computer equipment to Bob Parsons, a company employee, for $5,000. Crown and Parsons have been discuss...






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A corporation is contemplating the purchase of a new piece of equipment with a purchase price of $500,000. It plans to make a 10% down payment and wi...