Thad is planning to buy a rototiller next spring at an expected price of $579. In the current fall "flyer" fromEvergreen Lawn and Garden, the model he wants is advertised at $499.95 in a Fall Clearance Special.a. If money can earn 4%, what is the economic value on the preceding September 15 of the $579 that Thadwill pay to purchase the rototiller next April 1? (Assume that February has 28 days. Do not roundyour intermediate calculations and round your final answer to 2 decimal places.)Economic value2$458.00b. What are his true economic savings if he purchases the rototiller at the sale price of $499.95 onSeptember 15? (Round your answer to 2 decimal places.)True savings

Present Value(PV) refers to current value of future amount which is calculated by discounting that…

Thad is planning to buy a rototiller next spring at an expected price of $579. In the current fall "flyer" from Evergreen Lawn and Garden, the model he wants is advertised at $499.95 in a Fall Clearance Special. a. f money can earn 4%, what is the economic value on the preceding September 15 of the $579 that Thad will pay to purchase the rototiller next April 17 (Assume that February has 28 days. Do not round your intermediate calculations and round your final answer to 2 decimal places.) Economic value S 458.00 b. What are his true economic savings if he purchases the rototiller at the sale price of $499.95 on September 15? (Round your answer to 2 decimal places.) True savings

Thad is planning to buy a rototiller next spring at an expected price of $579. In the current fall "flyer" from Evergreen Lawn and Garden, the model he wants is advertised at $499.95 in a Fall Clearance Special. a. f money can earn 4%, what is the economic value on the preceding September 15 of the $579 that Thad will pay to purchase the rototiller next April 17 (Assume that February has 28 days. Do not round your intermediate calculations and round your final answer to 2 decimal places.) Economic value S 458.00 b. What are his true economic savings if he purchases the rototiller at the sale price of $499.95 on September 15? (Round your answer to 2 decimal places.) True savings

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion

Section: Chapter Questions

Problem 44P

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