Answer:
Actual real after tax rate of return is 0.657%
Explanation:
Use fisher method to compute real return:
=0.00971 or 0.971%
Calculate after tax return as shown below:
Federal tax rate is 28% or 0.28 and state tax is 6% or 0.06.
After tax return = 0.00971×(1 - 0.28) ×(1 - 0.06)
= 0.00657 or 0.657%
Answer:
PV= $230,148.09
Explanation:
Giving the following information:
You will receive 27 annual payments of $22,500. The first payment will be received 7 years from today and the interest rate is 5.1 percent.
First, we need to calculate the final value of the payments. We need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual pay= 22,500
n= 27
i= 0.051
FV= {22,500*[(1.051^27)-1]}/ 0.051
FV= $1,248,819.52
Now, we can calculate the present value:
PV= FV/(1+i)^n
PV= 1,248,819.52/ (1.051^34)
PV= $230,148.09
Answer:
GAPV = $7,000 ×({1 - [(1 + .035) / (1 + .065)]^5} / (.065 - .035)) = $31,063.79.
Explanation:
B2C stands for business to consumer. This would be the sales you’d make to a consumer. B2B stands for business to business. This is the sales you’d make with another business.
Answer:
$4,365
Explanation:
The computation of the total estimated warranty payable is shown below:
= Sales revenue × estimated warranty expense percentage
= $97,000 × 4.5%
= $4,365
By multiplying the sales revenue with the estimated warranty expense percentage we can get the total estimated warranty payable and the same is shown in the above computation part
