Concord Company, a machinery dealer, leased manufacturing equipment to Mays Corporation on January 1, 2017. The lease is for a 7-year period and requires equal annual payments of $26,143 at the beginning of each year. The first payment is received on January 1, 2017. Concord had purchased the machine during 2016 for $75,000. Collectibility of lease payments is reasonably predictable, and no important uncertainties surround the amount of costs yet to be incurred by Concord. Concord set the annual rental to ensure an 8% rate of return. The machine has an economic life of 8 years with no residual value and reverts to Concord at the termination of the lease. Compute the amount of the lease receivable.

$ 146,998.94  

Explanation:

The applicable formula in this case is the present of annuity due.The amount of annual lease rental needs to be stated to present value equivalence by discounting all future cash flows of lease rentals to today's equivalent worth.

PV=PMT*(1/i-1/i(1+i)^n)*(1+i)

i is the rate of return of 8% OR 0.08

n is the number of years which is 7

PMT is the yearly lease rental of $26143

PV=26143*(1/0.08-1/0.08(1+0.08)^7)*(1+0.08)

PV=26143*(1/0.08-1/0.137106)*(1+0.08)

PV=26143*(12.5-7.293629941 )*(1.08)

PV=26143*5.206370059 *1.08

PV= 146,998.94  

ans.

heterothermic organisms include those organisms that can switch between homeothermic (having body temperature higher than environment) and poikilothermic (having variation in internal body temperature) strategies.

some migratory birds show heterothermy as they decrease their metabolic rate during cold nights to keep their body temperature low. drop in metabolic rate allows increase in production efficiency of birds that reduces the internal body temperature to make it equal to external cold temperature during cold nights.

thus, the correct answer is 'birds allow their temperature drop in order to increase their production efficiency.'