Answer the problem. Show your solution.1. A construction company has an option to purchase a certain bulldozer for $61,000 atany time between now and 4 years from now. If the company plans to purchase thedozer 4 years from now, the equivalent present amount that the company is payingfor the dozer at 6% per year interest is closest to(a) $41,230(b) $46,710(c) $48,320(d) Over $49,0002. The cost of tuition at a certain public university was $160 per credit-hour 5 years ago.The cost today (exactly 5 years later) is $235. The annual rate of increase is closest to(a)(b)(c)(d)4%6%8%10%Answers: 1. C2. C If money's worth is 7% today and you are looking for a property worth P1M. Howmuch is the discount when it was sold to you, after 8 months, for only P975,000.00. Whatwas the rate of discount? the rate interest?Answer:D=(Answer is not provided; when you got d and r correctly, it followsthat your answer is correct)d = 6.8%;r= 7.3%

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A construction company has an option to purchase a certain bulldozer for $61,000 at any time between now and 4 years from now. If the company plans to purchase the dozer 4 years from now, the equivalent present amount that the company is paying for the dozer at 6% per year interest is closest to (a) $41,230 (b) $46,710 (c) $48,320 (d) Over $49,000

A construction company has an option to purchase a certain bulldozer for $61,000 at any time between now and 4 years from now. If the company plans to purchase the dozer 4 years from now, the equivalent present amount that the company is paying for the dozer at 6% per year interest is closest to (a) $41,230 (b) $46,710 (c) $48,320 (d) Over $49,000

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 7MC: Using the information provided, what transaction represents the best application of the present...

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