Essentially, your net worth is the value of what you own, minus what you owe. Or, as a formula: assets – liabilities = net worth
Goldsmiths increased money supply by cheating out their competitors, and being the best at what they did.
Capital gain is computed in the formula below:
Capital gain= [(Current price-Original price)/ Original price ]x100
If stocks before
Original price =$1.75 x (1+14.8%)
= $2.009
Current price = $1.75 x(1+11.2%)
= $1.956
Capital gains yield = [($1.956-$2.009)/($2.009)]x100
= -0.264 x 100
= -26.4
Capital loss of 26.4% because the stock value decreased.
Answer:
Esquire should purchase machine B since its present value is lower than machine B's ($69,917.73 < $73,356.18)
Explanation:
Machine A:
PV of purchase cost $63,000
PV of maintenance costs = $2,000 x 6.7101 (PV annuity factor, 10 periods, 8%) = $13,420.20
PV of resale value = -$6,615 / 1.08¹⁰ = -$3,064.02
total PV = $63,000 + $13,420.20 - $3,064.02 = $73,356.18
Machine B:
PV of purchase cost $52,500
PV of maintenance costs:
- $8,000 / 1.08³ = $6,350.66
- $10,000 / 1.08⁶ = $6,301.70
- $12,000 / 1.08⁸ = $4,765.37
total PV = $69,917.73
First of all, because there is no set manager, the owner probably does not know what the company is doing so, he will probably give it to you for a small price. After buying the company, you should first inquire about the employees (what can they do, what expirience etc.) After inquiring about the employees you need to promote the most expriienced and best employee as a manager. Because they have expirience, they will know who goes where.
I hope this helps.
