You are considering two home security companies for your new house. The first company offers free installation and equipment, but will charge you $401.00 per year forever. The second company charges $783.00 for installation, but will charge you $204.00 per year forever. Assume that payments are at the END of the year. Your personal interest rate is 5.00% per year, and you want to evaluate each proposal. What is the present value (PV) of the free installation?
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “You are considering two home security companies for your new house. The first company offers free installation and equipment, but will ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
During June, Cisco Company produced 12,000 chainsaw blades. The standard quantity of material allowed per unit was 1.5 pounds of steel per blade at a standard cost of $8 per pound. The actual cost was $7 per pound.
Answers (1)
You can always withdraw the money you have contributed to a Roth IRA without paying taxes on the withdrawal because you have already paid taxes on the original contribution.
Answers (1)
Drug companies are allowed to be monopolists in the drugs they discover in order to A. allow drug companies to charge a price that is equal to their marginal cost. B. discourage new firms from entering the drug market. C.
Answers (1)
A nurse is caring for a client with dehydration at the health care facility. the client is receiving glucose intravenously. what type of dressing should the nurse use to cover the iv insertion site?
Answers (2)
What is the purpose of the "circular flow model of a market economy?" A. It shows how the government interacts with households and firms in the marketplace. B. It shows the alternative ways to use a country's productive resources. C.
Answers (1)
New Questions in Business
Which education level has the highest return on investment (ROI)
Answers (1)
Assume that the money demand function is (M / P) d = 2,200 - 200r, where r is the interest rate in percent. If the price level is fixed at P=2, and the Fed wants to fix the interest rate at 7 percent, it should set the money supply at:
Answers (1)
On August 2, 2013, Jun Co. receives a $6,000, 90-day, 12% note from customer Ryan Albany as payment on his $6,000 account. 1. Prepare the journal entry assuming the note is honored by the customer on October 31, 2013.
Answers (1)
Are schools officials immune from being sued?
Answers (1)
Assume an asset cost $72,800 and has a current book value of $42,760. The asset is sold today for $32,900 cash. The firm's tax rate is 21 percent. As a result of this sale, the firm's net cash flow: 1. will increase by more than $32,900. 2.
Answers (1)