Old elevator new elevator
purchase price $102,500 $159,000
estimated salvage value 0 0
estimated useful life 5 years 4 years
depreciation method straight-line straight-line
annual operating costs
other than depreciation:
variable $34,000 $9,000
fixed 23,400 8,000
annual revenues are $240,000, and selling and administrative expenses are $28,000, regardless of which elevator is used. if the old elevator is replaced now, at the beginning of 2017, richter condos will be able to sell it for $25,100.
a. determine any gain or loss if the old elevator is replaced.
prepare a 4-year summarized income statement for each of the following assumptions:
(1) the old elevator is retained. (2) the old elevator is replaced.
c. using incremental analysis, determine if the old elevator should be replaced. (enter negative amounts using either a negative sign preceding the number e. g. -45 or parentheses e. g. (

The simple interest in a loan of $200 at 10 percent interest per year is

Suppose that jim plans to borrow money for an education at texas a& m university. jim will need to borrow $25,000 at the end of each year for the next five years (total=$125,000). jim wishes his parents could pay for his education but they can’t. at least, he qualifies for government loans with a reduced interest rate while he is in school. he has a special arrangement with aggiebank to lend him the money at a subsidized rate of 1% over five years without having to make a payment until the end of the fifth year. however, at the end of the fifth year, jim agrees to pay off the loan by borrowing from longhorn bank. longhorn bank will lend him the money he needs at an annual interest rate of 6%. jim agrees to pay back the longhorn bank with 20 annual payments and the payments will be uniform (equal annual payments including principal and interest). (i) calculate how much money jim has to borrow at the end of 5 years to pay off the loan with aggiebank. a. $121,336 b. $127,525 c. $125,000 d. $102,020 e. none of the above

How are interest rates calculated by financial institutions? financial institutions generally calculate interest as (1) interest or (.