1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
PSYCHO15rus [73]
2 years ago
11

The expected before-tax IRR on a potential real estate investment is 14 percent. The expected after-tax IRR is 10.5 percent. Wha

t is the effective tax rate on this investment?
Business
1 answer:
NeX [460]2 years ago
6 0

Answer:

25%

Explanation:

The expected before-tax IRR on a potential real estate investment is 14%

The expected after-tax IRR is 10.15%

Therefore, the effective tax rate on this investment can be calculated as follows

Effective tax rate= 1-(after-tax IRR/before-tax IRR)

Effective tax rate= 1-(10.15/14)

= 1-0.75

= 0.25×100

= 25%

Hence the effective tax rate is 25%

You might be interested in
Suppose that a delivery company currently uses one employee per vehicle to deliver packages. Each driver delivers 60 packages pe
lisabon 2012 [21]

Answer:

a. What is the MRP per driver per day?

  • the marginal revenue product per driver = 60 packages x $20 = $1,200 per day

b. Now suppose that a union forces the company to place a supervisor in each vehicle at a cost of $300 per supervisor per day. The presence of the supervisor causes the number of packages delivered per vehicle per day to rise to 60  packages per day What is the MRP per supervisor per day? By how much per vehicle per day do firm profits fall after supervisors are introduced?

  • if the drivers were already delivering 60 packages per day without the supervisor, then the addition of the supervisor doesn't change anything. So the MRP of the supervisor is $0. That means that the company's profits will decrease by $300 per day due to the supervisors.

c. How many packages per day would each vehicle have to deliver in order to maintain the firm's profit per vehicle after supervisors are introduced?

  • $300 / 20 = 15 packages per day
  • in order to maintain the profit per vehicle, each team of delivery man + supervisor should be able to deliver 75 packages per day.

d. Suppose that the number of packages delivered per day cannot be increased but that the price per deliver might potentially be raised. What price would the firm have to charge for each delivery in order to maintain the firm's profit per  vehicle after supervisors are introduced?

  • $300 / 60 = $5
  • the price of each package delivered should increase by $5 to $25 per package.
6 0
3 years ago
A project initially costs $40,500 and will not produce any cash flows for the first 2 years. Starting in Year 3, it will produce
melisa1 [442]

Answer:

Net present value = $2063.1922

Explanation:

given data

initially costs = $40,500

cash flows = $34,500

final cash inflow = $12,000

required rate of return = 18.5 percent

solution

The cash flows is  

Year 0 =  $40500

Year 1 = $0

Year 2 = $0

Year 3 = $34500

Year 4 = $34500

Year 5 = $0

Year 6 = $12000

so  Net present value will be express as

Net present value = -Initial cash outflow + Present value of future cash flows ...............1

Present value of future cash flows = (cash flow in year n) ÷ (1 + required rate of return)^t   ..........................2

put here value we get

Present value = \frac{0}{(1+0.185)^1} + \frac{0}{(1+0.185)^2} + \frac{34500}{(1+0.185)^3} + \frac{34500}{(1+0.185)^4} + \frac{0}{(1+0.185)^5} + \frac{12000}{(1+0.185)^6}    

Present value = $42563.1922    

Net present value= -$40500 + $42563.1922

Net present value = $2063.1922

8 0
3 years ago
Sarafiny Corporation is in the process of preparing its annual budget. The following beginning and ending inventory levels are p
I am Lyosha [343]

Answer:

See below

Explanation:

Raw materials purchased is computed as;

Raw material purchase = Ending inventory + required for production - beginning inventory

= 50,000 + ((80,000 + 770,000 - 30,000) × 3) - 60,000

= 50,000 + 2,460,000 - 60,000

= 2,450,000 grams

8 0
2 years ago
Anna is 88 years old and under the legal guardianship of her daughter. One day Anna receives a telephone call from a health insu
Nutka1998 [239]

Answer:

Anna is 88 years old and under the legal guardianship of her daughter. One day Anna receives a telephone call from a health insurance salesman and purchases a $400 a month insurance policy. This contract is VOID.

Explanation:

The nullity is a legal sanction, which detracts from the effectiveness that a legal act can have, that has been born with some vice or that simply has not been formally born to the world of law.

A contract can be classified as null by different factors, to define it more precisely, there are two types of nullity in a contract, there is Absolute Nullity and Relative Nullity.

7 0
3 years ago
Wyckam Manufacturing Inc. has provided the following information concerning its manufacturing costs:
kicyunya [14]

Answer:

Total Manufacturing Costs is $95,680

Explanation:

                        Wyckam Manufacturing Inc.

              Planning Budget for Manufacturing costs

                       For the month Ended June 30

Direct Materials      (4,200 hours *$5.40)                    $22,680

Direct Labor                  Fixed                                        $42,400

Supplies                  (4,200 hours * $0.25 )                   $1,050

Utilities                   ($1,700+ 4,200 Hours * $0.25)      $2,750

Depreciation                  Fixed                                        $15,200

Insurance                       Fixed                                        $11,600

Total Manufacturing Costs                                         $95,680

7 0
3 years ago
Other questions:
  • The 5.5 million vinyl long-playing (LP) records sold in the United States per year pales in comparison with the 1.26 billion dig
    8·1 answer
  • Moses is working on a kibbutz in Israel where all the members have the same standard of living and they equally divide the profi
    10·1 answer
  • Suppose that GDP is $50 million in 2015 but falls to $48 million in 2016, and that no changes in personal consumption expenditur
    14·1 answer
  • Explain why the demand for a particular brand of apple juice is elastic.
    13·1 answer
  • Under which circumstance would someone need disability insurance?
    12·2 answers
  • Karla Salons leased equipment from Smith Co. on July 1, 2021, in a finance lease. The present value of the lease payments discou
    7·1 answer
  • In the country of Mashwen, the state owns key industries such as energy andtransportation. The rest of the industries are privat
    9·1 answer
  • In the month of March, Baldwin corporation received orders of 169 units at a price of $15 for the product boat. Baldwin uses the
    11·1 answer
  • 10
    8·1 answer
  • A property owner installs a new air conditioning system. how does this affect the property's effective age?
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!