Question
In: Finance
A person purchases a company for $50,000 now. This company will lose $2,200 each year the...
A person purchases a company for $50,000 now. This company will lose $2,200 each year the first four years. At the end of the fourth year, he/she will invest additional $16,000 in the company which will result in a profit of $11,000 each year from the fifth year through the fourteenth year. At the end of 15 years, the company can be sold for $66,000. Compounding is annual. (a) Determine the IRR. (b) Calculate the future worth if MARR = 12%. (c) Calculate the ERR when = 10%.
Solutions
jeff jeffy answered 6 months agoRelated Solutions
1. A small company purchased now for $27,208 will lose $867 each year for the first...
1. A small company purchased now for $27,208 will lose $867 each
year for the first 4 years. An additional $6,082 invested in the
company during the fourth year will result in a profit of $6,979
each year from the fifth to the fifteenth year. At the end of 15
years, the company can be sold for $32,446. Calculate the ERR when
є = 13%.
A company has the project costs $50,000 now and $6000 per year for 7 years beginning...
A company has the project costs $50,000 now and $6000 per year
for 7 years beginning 1 year from now with increases of 8% per year
thereafter for the next 9 years. Calculate a project’s present
worth with a real interest rate of 10% per year and an inflation
rate of 4% per year.
Each year, Florida's Best Salad Dressing, Inc. (FBSD) purchases 50,000 gallons of extra virgin olive oil....
Each year, Florida's Best Salad Dressing, Inc. (FBSD) purchases
50,000 gallons of extra virgin
olive oil. Ordering costs are $80.00 per order, and the carrying
cost, as a percentage of inventory
value is 80 percent. The purchase price to FBSD is $0.50 per
gallon. FBSD’s management currently
orders the EOQ each time an order is placed. No safety stock is
carried. The supplier is now offering a
quantity discount of $0.03 per gallon if FBSD orders 10,000
gallons at a...
Each year, Florida's Best Salad Dressing, Inc. (FBSD) purchases 50,000 gallons of extra virgin olive oil....
Each year, Florida's Best Salad Dressing, Inc. (FBSD) purchases
50,000 gallons of extra virgin olive oil. Ordering costs are $80.00
per order, and the carrying cost, as a percentage of inventory
value is 80 percent. The purchase price to FBSD is $0.50 per
gallon. FBSD’s management currently orders the EOQ each time an
order is placed. No safety stock is carried. The supplier is now
offering a quantity discount of $0.03 per gallon if FBSD orders
10,000 gallons at a...
Each year, Florida's Best Salad Dressing, Inc. (FBSD) purchases 50,000 gallons of extra virgin olive oil....
Each year, Florida's Best Salad Dressing, Inc. (FBSD) purchases
50,000 gallons of extra virgin
olive oil. Ordering costs are $95.00 per order, and the carrying
cost, as a percentage of inventory
value is 80 percent. The purchase price to FBSD is $0.50 per
gallon. FBSD’s management currently
orders the EOQ each time an order is placed. No safety stock is
carried. The supplier is now offering a
quantity discount of $0.03 per gallon if FBSD orders 10,000
gallons at a...
"Use it or lose it" is a term we are now familiar with as it relates...
"Use it or lose it" is a term we are now familiar with as it
relates to physical health. How might it also apply to cognitive
health?
b. What are some other concepts for community that exist where you
are locally that fill the void for many senior citizens and give a
boost in motivation to care for oneself into the end of life?
Cheeseburger and Taco Company purchases 17,886 boxes of cheese each year.
Cheeseburger and Taco Company purchases 17,886 boxes of cheese each
year. It costs $20 to place and ship each order and $6.76 per year
for each box held as inventory. The company is using Economic Order
Quantity model in placing the orders.
An entity purchases a haulage company for $50,000 on 1 January 20X0. The operation consists of...
An entity purchases a haulage company for $50,000 on 1 January
20X0. The operation consists of an operating licence with a fair
value of $10,000 and 5 wagons each with a fair value of
$6000.
On 5 January 20X0, one of the wagons crashed and the insurance
company refused to settle any liability due to the non-disclosure
of certain material facts. The wagon was a write-off.
The adverse publicity and operating capacity reduction, reduced the
recoverable amount of the business...
In order to lose weight, a person must be ________________. balancing their energy input with energy...
In order to lose weight, a person must be ________________.
balancing their energy input with energy output
consuming more calories than are expended
in a state of positive energy balance
in a state of negative energy balance
less active
Now suppose a technological change increases the economy’s output by $2,200 billion. The real wage rises...
Now suppose a technological change increases the economy’s
output by $2,200 billion. The real wage rises to $21,500. In
response, the number of labour increases to 51 million workers. In
the same three panels, you have already drawn, sketch the new
curves that result from this change. Explain what happens to the
level of employment, the level of potential output, and the
long-run aggregate supply curve.
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