The rate of return after 1 year is 25%.
An internal indicator of the return on investment in a project is the rate of return. The interest rate is the imposed cost for borrowing money from lenders. The average rate of return approach reduces outlier statistics in data sets since it is based on averages. In long-term averages, when numerous years of gains can lessen the impact of a single year of losses, this is especially helpful.
Calculation:
When 700 shares are sold short at $30 a share, the sale price is:
=700 * $30
= $ 21,000
The necessary margin for a short sale is 40%.
It denotes the overall margin employed as follows:
=$ 21,000 * 40%
= $ 8,400
Gain from a short sale:
=($ 30 - $ 27) * 700 shares
= $2,100
As a result, the rate of return
Profit earned / Margin used:
= $2,100/ $8,400
= 0.25 or 25%
=25%
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Answer:
No there was no contract, there was at best an agreement to agree (an agreement based on understanding that a future arrangement can be made).
Nina said she was still thinking about her son's proposal and had not decided yet, so there was no contract.
Oral contracts is a spoken agreement between two parties that may be legally binding.
Breach of oral contract can be hard to prove since it is not written down.
An oral agreement between family members is not enough to be considered a contract.
Explanation:
Answer:
1. <u>Average variable rate</u>
a. Food and wages = Food and wages expenses/ Total revenue = 155000/650000 = 0.2385 times
b. Delivery cost= Total delivery expenses/Number of mile driven = 22950/9000 = $2.5500/mile
c. Other cost = Total other expenses/ Number of items =260/20 = $13/item
2. Total cost = Total Fixed cost + Total Variable cost
= 265000 + [0.2385(a) + 2.55(b) + 13(c). a=Sales revenue, b=Number of miles driven, c=Number of items
3. If any new item is added to the menu then only the Variable expenses incurred will increase, fixed assets will remain constant. So, the total cost will go up the sum effect of 0.2385 times of revenue, $2.55 of per kilo meter driven for delivery and $13 of other charges for per item on menu.
Principal Amount P = $ 48000
Rate of interest r = 6% = 0.06
Time interval t = 7
Formula for Interest I = P x r x t => I = 48000 x 0.06 x 7 => I = 2880 x 7
Total Interest for seven years would be $20,160
