On January 1, 2011, Shannon Company completed the following transactions (assume a 8 percent annual interest rate):
(Use Table 1, Table 2):
1. Bought a delivery truck and agreed to pay $54,000 at the end of three years.
2. Rented an office building and was given the option of paying $17,000 at the end of each of the next three years or paying $35,000 immediately.
3. Established a savings account by depositing a single amount that will increase to $50,000 at the end of seven years.
4. Decided to deposit a single sum in the bank that will provide 10 equal annual year-end payments of $23,000 to a retired employee (payments starting December 31, 2011).
Required, please answer:
1. What is the cost of the truck that should be recorded at the time of purchase? (Round “PV Factors” to 4 decimal places and final answer to the nearest whole dollar amount. Omit the “$” sign in your response.)
Cost of the truck $
2. Which option for the office building should the company select? (Round “PV Factors” to 4 decimal places.)
a) Pay in three installments
b) Pay in single installment
3. What single amount must be deposited in this account on January 1, 2011? (Round “PV Factors” to 4 decimal places and final answer to the nearest whole dollar amount. Omit the “$” sign in your response.)
Amount to be deposited $
4. What single sum must be deposited in the bank on January 1, 2011? (Round “PV Factors” to 4 decimal places and final answer to the nearest whole dollar amount. Omit the “$” sign in your response.)
Amount to be deposited $
Try it now!
How it works?
Follow these simple steps to get your paper done
Place your order
Fill in the order form and provide all details of your assignment.
Proceed with the payment
Choose the payment system that suits you most.
Receive the final file
Once your paper is ready, we will email it to you.
Australia Assessments has gained an international reputation of being the leading website in custom assignment writing services. Once you give us the instructions of your paper through the order form, we will complete the rest.
As we work towards providing the best custom assignment services, our company provides assignment services for any type of academic essay. We will help you develop professionally written essays that are rich in content and free from plagiarism.
Admission and Business Papers
Our skilled team of professional writers will ensure that we help you craft a remarkable admission essay for your desired Master's program in your institution of choice. We won't stop there. Once you enter the job market, we will be available to secure you a position at your desired worksite by creating an outstanding portfolio or resume.
Editing and Proofreading
Our editorial team is always available for all editing and proofreading services. They check completed papers by our writers and also provide professional opinions to papers completed by our clients.
We harbor professional academic writers with different qualifications in diverse academic fields. As such, we are capable of handling both simple and technical papers. Ensure that you provide us with correct and complete instructions in the order form.