Answer:
We have the comparison below
Explanation:
1 2 3
Expenses for the year 20000 27000 34000
PVIF at 12% 0.89286 0.79719 0.71178
PV of expenses 17857 21524 24201
Cumulative PV of expenses 17857 39381 63582
EOY MV -1000 -1750 -2500
PV of MV -893 -1395 -1779
Total PW (4000+ PV of expenses - PV of MV) 22750 44776 69361
P/A 0.89286 1.69005 2.40183
EUAC 25480 26494 28879
Answer:
The present value at 11% is $3,902.13,$3,479.85 at 16% and $2,615.57 at 30%
Explanation:
The present value formula is given as :
PV=FV/(1+r)^n
Where FV is the future value of cash flows such as the ones given in the question
r is the rate of return at 11%,16% and 30%
n is the applicable time horizon relevant to each of the cash flow.
Find attached spreadsheet for detailed calculations.
Answer:
The answer is $45,000
Explanation:
$45,000
- Net Short Term Capital gain +Net Long Term Capital loss= 65,000+ (250,000)= -185,000
-Net Long Term Capital loss(2015)+Net Short Term Capital gain (2016)+Net Long Term Capital Gain(2017)
= 60,000+45,000+35,000=140,000
-185,000+140,000= <u>(45,000)</u>
Solution:
In years Best estimate of return Working note
5 12.36% ((5-1)/(40-1)*0.1024)+((40-5)/(40-1)*0.126)
10 12.06% ((10-1)/(40-1)*0.1024)+((40-10)/(40-1)*0.126)
20 11.45% ((20-1)/(40-1)*0.1024)+((40-20)/(40-1)*0.126)
The formula for the return on assets is calculated by dividing the net income by the total average assets. The profit margin and total asset sales can also be represented as a consequence of this ratio. For the calculation of the total asset return, either formula may be used.
