Answer:
It will take 3 years and 66 days to pay for the initial investment.
Explanation:
Giving the following information:
Cash flows= $615 for 8 years
Initial investment= $1,750
<u>The payback period is the time required to cover for the initial investment.</u>
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Year 1= 615 - 1,750= -1,135
Year 2= 615 - 1,135= -520
Year 3= 615 - 520= 95
Exactly:
(95/520)= 0.18*365= 66
It will take 3 years and 66 days to pay for the initial investment.
You can spend money on things you need first instead of the things you want. Most people spend their pay on things that they want rather than getting something they need this leads to financial problems. Another way is to put at least $20 in the bank every paycheck. This way if something bad happens and you need to pay for it then you have the extra money in your bank. Daily spending can be a bad thing because you are constantly spending and never saving money, and life is full of surprises so you need to save money as well for preparation.
Hope this helped. Have a great day!
Answer:
The amounts that Beldon should capitalize as the cost of the land and the new building is $64,900 and $528,500 respectively
Explanation:
The computations are shown below:
For land:
= Purchase value of the land + Demolition of old building + Legal fees for title investigation of land - Salvaged materials
= $60,000 + $4,500 + $2,500 - $2,100
= $64,900
For building:
= Architect’s fees (for new building) + Construction costs + Interest on construction loan
= $13,000 + $510,000 + $5,500
= $528,500
Answer:
$42
Explanation:
APR = 18% , month rate = 18%/12 = 1.5%
Fee for cash advance = 2%
Cash advance of the first day of month = $1,200
Finance charge = Cash advance * (Monthly rate + Advance cash fee)
Finance charge = $1,200*1.5% + $1,200*2%
Finance charge = $18 + $24
Finance charge = $42
So, the approximate total finance charge i will pay on this cash advance for the month is $42
Answer:
Re = 8.79%
Explanation:
annual growth rates:
($1.38 - $1.25) / $1.25 = 0.104
($1.49 - $1.38) / $1.38 = 0.078
($1.60 - $1.49) / $1.49 = 0.074
($1.69 - $1.60) / $1.60 = 0.056
geometric growth rate = ⁴√(1.104 x 1.078 x 1.074 x 1.056) - 1 = ⁴√1.34976 - 1 = 1.0779 - 1 = 0.0779 = 7.79%
P₀ = Div₁ / (Re - g)
$199 = $2 / (Re - 0.0779)
Re - 0.0779 = $2 / $199 = 0.01
Re = 0.01 + 0.0779 = 0.0879 = 8.79%
