The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows: Y
ear Investment Cash Inflow 1 $61,000 $3,000 2 $5,000 $6,000 3 $12,000 4 $13,000 5 $16,000 6 $10,000 7 $8,000 8 $10,000 9 $9,000 10 $9,000 Required: 1. Determine the payback period of the investment. (Round your answer to 1 decimal place.) 2. Would the payback period be affected if the cash inflow in the last year were several times as large? Yes No
1 answer:
Answer:
6.75 years
No
Explanation:
The payback period calculates how long it takes to recover the amount invested in a project.
Explanations on how the payback period is calculated can be found in the attached image.
If the cash flow of the last year was increased , it won't affect the payback period because the amount invested has already been recovered between the 6th and 7th year. Therefore, the last cash flow won't be used in calculating the payback period.
I hope my answer helps you
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A municipality charges 12 mills in taxes. The assessed valuation of a piece of real estate in the municipality is $225,000, but its fair market value is $250,000. The property has an annual tax obligation of $2700.
<h3>What is meant by tax liability?</h3>The sum of money owed to the Internal Revenue Service (IRS) at the conclusion of each tax year is referred to as "tax liability." By pursuing deductions and adjusting their filing approach, many Americans set the objective of lowering their tax obligation.
Tax liability is the total amount of tax that people and companies owe to the federal, state, and local governments in a specific time frame. Tax liabilities are short-term obligations for firms that are listed on a balance sheet and paid off within a year.
One mill = 0.001
12 mills = 0.012
Taxes are based on assessed valuation, not fair market value.
0.012 $225,000 = $2,700.
Another way to think about it is that 1 mill = $1 of tax for each $1,000 of assessed value.
A municipality charges 12 mills in taxes. The assessed valuation of a piece of real estate in the municipality is $225,000, but its fair market value is $250,000. The property has an annual tax obligation of $2700.
The complete question is:
A municipality has a tax rate of 12 mills. A piece of real property in the municipality is assessed at $225,000 and has a fair market value of $250,000. The annual tax liability on the property is:
A. $120
B. $300
C. $2,700
D. $3,000
To learn more about tax liability refer to:
#SPJ4
Answer:
with the new rate we will pay in 58 months.
if there is 2% commision charge: 59.35 = 60 months
Explanation:
Currently we owe 10,000
This will be transfer to a new credit card with a rate of 6.2%
We are going to do monthly payment of 200 dollars each month
and we need to know the time it will take to pay the loan:
We use the formula for ordinary annuity and solve for time:
C $200.00
time n
rate 0.005166667 (6.2% rate divide into 12 months)
PV $10,000.0000
We arrenge the formula and solve as muhc as we can:
Now, we use logarithmics properties to solve for time:
-57.99227477 = 58 months
part B
If there is a charge of 2% then Principal = 10,000 x 102% = 10,200
we use that in the formula and solve:
-59.34880001 = 59.35 months