The cost of the machine is the present value of the annuity the series of equal periodic payments). The annuity is an ordinary annuity because the payments begin one period after the date of purchase. The cost therefore equals the periodic payment times the interest factor for an ordinary annuity of one currency unit for a specified number of equal periodic payments discounted at a given interest rate.

The interest cost of borrowing US $4,900,000 $5,000,000 98%) to take advantage of the discount is US $24,500 [$4,900,000 x 12% 15 - 360)], and the total cost will be US $4,924,500. The total cost if the discount is not taken will be 5,000,000, a difference of US $75,500.

This is a guarantee. The liability is contingent on the lesser's not receiving the full residual value from a third party.

Evaluations reinforce accomplishments, help in assessing employee strengths and weaknesses, provide motivation, assist in employee development, permit the organization to assess its human resource needs, and serve as a basis for wage increases. FJon discriminatory benefits are given to everyone in the organization in equal amounts, regardless of title, pay, or achievement of objectives.