An owner of a six-family apartment complex pays the property manager an annual salary equal to 6% of the property's annual gross
1 answer:
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Answer:
I will need to invest 64,669.73 dollars now.
Explanation:
We will calcualte the future value of the cabin considering the inflation:
Principal 150,000.00
time 15 years
inflation 0.04000
Amount 270,141.53
Then we calculate the present value of the lump sum at 15 years discounted at 10% which is the yield of the funds
Maturity 270,141.53
time 15 years
rate 0.10
PV 64,669.73
we would need to deposit 64,669.73 today to get enough cash to purchase the bcabin in 15 years.
An operating activity includes those transactions and events that determine net income, including the purchase of merchandise, the sale of goods and services to customers, and expenditures to operate the business.
A business operates through certain actions that manage and keep the business alive. Such operating activities may include more than a couple of processes that help the business stay afloat.
- The operating activities of a business include all the things that a company does to provide an ongoing flow of products and services to the market.
- Such activities may include setting a strategy, keeping accounts of the transactions like purchasing of merchandise, the sale of goods and services to customers, and the expenditures incurred to operate the business.
- Operating activities are important as they control the cash flow of the business and maybe the sole source of ensuring the business stays alive.
- It is directly linked to the deep-end workings of the company, like the production, sale, distribution, etc. of the company.
Thus, operating activities such as the determination of the incomes, purchase of merchandise, sale of goods and services, etc. all play a huge part in the successful running of the company. It's actions such as these that determine the success or failure of the company.
Learn more about cash flow activities here:
