Answer: $86700
Explanation:
The net operating income is used in knowing the profitability of an investment. The net operating income is gotten by subtracting the expenses from the revenue.
Based on the information given in the question, the net operating income is $86700. Kindly check the attachment for further details.
Answer:
c. The real interest rate is 1 percent and the expected inflation rate is minus 2 percent
Explanation:
Nominal interest rate = real interest rate + expected inflation rate.
For the third option, the nominal interest rate: 1% + (-2%) = -1%
For the first option, the nominal interest rate: 2% + 1% = 3%
For the second option, the nominal interest rate: 0 + 2% = 2%
For the fourth option, the nominal interest rate: -2% + 3% = 1%
I hope my answer helps you
Answer:
This means that receiving 9000 today is better for us as we will have more at the end of 6 years.
Explanation:
We need to first calculate what is the future value of payments in both scenarios. If we receive $9,000 today and invest it at 10% for 6 years we will have 9000*1.10^6=15,944
If we start reviving cash in 4 annual payments 2 years from now of $3000 we will have to find the future value of each individual payment and add them up.
First payment Future value = 3000*1.10^4=4392 (Money can be invested for 4 years at 10%)
Second payment future value = 3000*1.10^3=3993 (Money can be invested for 3 years at 10%)
Third payment future value = 3000*1.10^2=3630 (Money can be invested for 4 years at 10%)
Fourth payment future value = 3000*1.1=3300
Add them all up = 15315
This means that receiving 9000 today is better for us as we will have more at the end of 6 years.
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