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Ivan
2 years ago
14

If a project costs ​$100 comma 000100,000 and is expected to return ​$27 comma 00027,000 ​annually, how long does it take to rec

over the initial​ investment? what would be the discounted payback period at iequals=1212​%? assume that the cash flows occur continuously throughout the year.
Business
1 answer:
stealth61 [152]2 years ago
5 0

The formula for discounted payback period is DPP = -ln (1 – Id/C) / ln (1+d), wherein I is the initial investment, d is the discount rate, and C is the cash flow. Substituting values, DPP = - ln(1-((0.12)($100)/$27)) / ln(1+0.12). Therefore, DDP is equal to 5.19 years.

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As a component of real estate value, the principle of substitution states that
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Answer:

a. If two similar properties are for sale, a buyer will purchase the cheaper of the two.

Explanation:

The principle of substitution justifies the idea that the maximum value of a property will be set by the selling price of an equally valuable and desirable substitute property. In this case of property sale, if an area has two similar houses and one is being sold for $912,000 and the other is priced at $105,000, buyers will most likely go for the cheaper one. There is no reason to pay more money if they will be getting a similar property at low cost.

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3 years ago
What is the opportunity cost of studying for an important exam
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What ? Getting a good grade I guess or $20 for A+
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3 years ago
On October 1, year 14, Park Co. purchased 200 of the $1,000-face-value, 10% bonds of Ott, Inc., for $220,000, including accrued
lana [24]

Answer:

Bond receivable - Ott Inc 200,000

Premium on B.R Ott Inc       14,400

Interest receivables             10,000

Net:                                     224,400

Explanation:

As Park Co uses straight line method, we don't have to solve for the present value of the bond we directly label the difference between cost and face value as premium or discount accordingly. Premium when above and discount when lower.

accrued interest:

200 bonds x $1,000 each x 10% x 3/12 = 5,000

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Balance at December year 15:

the interest payable will be for the entire period:

200,000 x 10% / 2 = 10,000

the premium will be amortized for 3 month.

and it has outstanding 75 month to mature from October 1st

15,000 x 3 / 75 months = 600

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8 0
3 years ago
Explain why it is worthwhile to keep a theater open during the afternoon, at a time when there are fewer customers than in the e
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A thearter is kept open for an advertisement to allow people to view or have an idea of the movies to be shown in the evening.

<h3>What is a business strategy?</h3>

Business strategy is a list of actions and decisions made by a company or organization to reach its goals and objectives.

Opening theater in the afternoon is a business strategy and it is an approach to create awareness of what their programs will be.

Therefore, A theater is kept open for an advertisement to allow people to view or have an idea of the movies to be shown in the evening.

For more information on business strategy kindly check

brainly.com/question/24967768

8 0
2 years ago
As time passes, fixed assets, other than land, lose their capacity to provide useful services. To account for this decrease in u
natta225 [31]

Answer:

depreciation

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Based on the information provided within the question it can be said that the term that is being described in this question is called depreciation. This is the reduction in the value of an asset as time goes by, and is mainly due to the fact that the asset experiences wear and tear and is not in the same condition as it was when it was purchased, therefore there is less demand for it.

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