Answer:
B. $2,600
Explanation:
The computation of the net rental income is shown below:
= Monthly rental payments × total number of months in a year - (utilities + maintenance & repairs + insurance) × percentage - depreciation expense
= $550 × 12 months - ($3,600 + $900 + $500) × 50% - $1,500
= $6,600 - $2,500 - $1,500
= $2,600
Since only one apartment is on rent so we considered the expenses of the building at 50% not full value and the same is applied above
Structure will give employees more clarity, help manage expectations, enable better decision-making and provide consistency.
Answer:
n = 100 customers
X = 80 who paid at the pump
A) the sample proportion = p = X / n = 80 / 100 = 0.8
we can definitely state that 80% of the customers paid at the pump.
B) if we want to determine the 95% confidence interval:
z (95%) = 1.96
confidence interval = p +/- z x √{[p(1 - p)] / n}
0.80 +/- 1.96 x √{[0.8(1 - 0.8)] / 100}
0.80 +/- 1.96 x √{(0.8 x 0.2) / 100}
0.80 +/- 1.96 x √{(0.8 x 0.2) / 100}
0.80 +/- 1.96 x 0.4
0.80 +/- 0.0784
confidence interval = (0.7216 ; 0.8784)
C) We can estimate with a 95% confidence that between 72.16% and 87.84% of the customers pay at the pump.
Answer:
8 years
Explanation:
Given: Cost of new machine= $500000.
Annual cash inflow= $100000.
Annual cash outflow= $37500.
First, we will calculate annual payback or cash inflow.
Annual payback= 
∴Annual payback= 
Now computing cash payback period.
Cash payback period= 
Cash payback period= 
∴ Cash payback period is 8 years.
When payback period is short then investment is more attractive.
Interest rate and years of repayment