Answer:
6.1 y
Explanation:
Diamond Company
New equipment÷(Annual net income +Depreciation expense)
New equipment$1,400,000
Annual net income $90,000
Depreciation expense $140,000
$1,400,000 ÷ ($90,000 + $140,000)
=$1,400,000÷$230,000
= 6.1 y
Therefore the cash payback period will be 6.1 years
Answer:
The correct answer is letter "B": develop a business plan.
Explanation:
Entrepreneurs who lack funds to start their ventures should develop a business plan so it can be presented to prospective investors who will decide if the venture is of their interest or not. The business plan should include the mission and vision of the business as well as a <em>SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis</em> explaining how the business will mitigate its risks and maximize its benefits.
The business plan should be innovative in Peppy's case since pizzerias are very common, thus, Pepe's Pizzazzeria must have a clear competitive advantage to face competitors.
Answer:
(A) $5,131.5
(B) $12,729.5
Explanation:
The interest earned on the value of interest earned before is the compounded interest. Compounding is the reinvestment of the amount earned before and take return over it too.
As per given data
Invested amount = $5,000
Interest rate = 3.9%
Interest is compounded monthly
Monthly rate = 3.9% / 12 = 0.325%
Formula for the accumulated amount of investment
A = P ( 1 + r )^n
Accumulated Money when $5,000 is
(A) Invested for 8 months
A = $5,000 ( 1 + 0.325% ) ^8
A = $5,131.5
(b) Invested for 24 years or 288 months (24 x 12)
A = $5,000 ( 1 + 0.325% ) ^288
A = $12,729.5
Answer: -13.35%
Explanation:
Based on the information given in the question, the annual rate of return on this painting will be calculated thus:
Sales price of painting = $1,080,000
Cost price of painting = $1,660,000
The sales Price formula is given as
= Cost price × (1 +r)³
1080000 = 1660000 × (1+r)³
1,080,000/1,660,000 = (1+r)³
0.65 = (1 + r)³
Annual rate of return r will now be:
= 0.6506^⅓ - 1
= -13.35%
