________ is the management of the network of interconnected steps involved in the provision of product and service packages.

You can buy property today for $3 million and sell it in 5 years for $4 million. (you earn no rental income on the property.)

Luden [163]

a. Rate of interest : 8%

Today’s Price = $3,000,000

Price after 5 years = $4,000,000

Present Value of price after 5 years = $4,000,000 / (1+0.08)^5

= $2,722,333.88

b. The property is not worth investing, since investing in the land is $3,000,000 while it can be sold today as $2,722,333, thus not a profitable investment as it will incur a loss of $277,667 ($3,000,000 - $4,000,000).

c. Present value of rent of 5 Years = $200,000*PVIFA(8%,5)

= $200,000*3.99999

= $798,542.01

d. NET PRESENT VALUE OF INVESTMENT = PRESENT VALUE OF FUTURE CASH FLOWS – INITIAL INVESEMTENT

NET PRESENT VALUE = $2,722,333.88 + $798,542.01 - $3,000,000

NET PRESENT VALUE = $520,874.80

Since the Net Present value is positive, it is worth investing in the land.

4 0

4 years ago

Your firm has net income of $273 on total sales of $1,180. Costs are $660 and depreciation is $130. The tax rate is 30 percent.

forsale [732]

Answer:

The operating cash flow is equal to $403

Explanation:

Operating cash flow = Net income+Depreciation

=$273+$130

=$403

Cash Flow From Operating Activities indicates the amount of cash and income an organization generates from its ongoing day to day and regular business activities.

8 0

3 years ago

A competitive car wash currently hires 4 workers, who together can wash 80 cars per day. The market price of car washes is $5 pe

Bezzdna [24]

Answer:

b) 100 cars per day.

Explanation:

With the information above, we can conclude that each worker washes 20 cars per day, and earns a wage of $60 per day.

So the total labor costs per day is $60 wage per worker X 4 workers = $240

The total sales revenue per day is: 80 cars washed per day X $5 per wash = $400.

So, we can see that with four workers, the firm has a good profit of = $400 - $240 = $160.

If the firm hired a fifth worker, labor costs would increase to $320 ($240 + $60), the amount of cars washed would increase to 100, and the sales revenue would increase to $500 (100 x $5).

So, profits would increase to $180 ($500 - $320) if the firm hired a fifth worker.

However, productivity should still be stable, so a worker who washed less than 20 cars per day should not be hired, this is why the A option is wrong.

8 0

3 years ago

Suppose that out of the original 100 increase in government spending, 60 will be recycled back into purchases of domestically pr

forsale [732]

Answer:

d. 36

Explanation:

The computation of value will be recycled is shown below:-

Out of 100 expenditure changes 60 should return to buy.

Thus, the saving = 100 - 60

= 40%

and consumption is 60%.

The value recycled in the next round = First round purchase × Consumption ratio

= 60 × 60%

= 36

Therefor for computing the value will be recycled in the next round we simply multiply the first round purchase with consumption ratio.

7 0

3 years ago

what is the first step in the project control process for measuring and evaluating project performance?

Alexxx [7]

Answer:

Setting a baseline plan.Measuring progress and performance.Comparing plan against actual.Taking action.

7 0

2 years ago