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barxatty [35]
3 years ago
10

A local restaurant owner is considering expanding into another rural area. The expansion project will be financed through a line

of credit with City Bank. The administrative costs of obtaining the line of credit are​ $500, and the interest payments are expected to be​ $1,000 per month. The new restaurant will occupy an existing building that can be rented for​ $2,500 per month. The incremental cash flows for the new restaurant include A. ​$500 administrative​ costs, $1,000 per month interest​ payments, $2,500 per month rent. B. ​$2,500 per month rent. C. ​$500 administrative​ costs, $2,500 per month rent. D. ​$1,000 per month interest​ payments, $2,500 per month rent.
Business
1 answer:
Vladimir79 [104]3 years ago
5 0

Answer:

B) ​$2,500 per month rent.

Explanation:

Incremental cash flows do not include interest payments on investment capital, since the cash flows should be equally generated if you invest your own money, another partner invests his money or someone else lends it to you. The same logic applies to the administrative costs of the credit line.

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Compared to attending a technical school, completing a four-year college degree allows you to: <span>select from a wide range of careers
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4 0
3 years ago
What is the standard deviation of a stock that has a 10% chance of earning 18%, a 10% chance of making 11%, a 40% chance of maki
Yakvenalex [24]

Answer:

A. 7.95%.

Explanation:

Calculate the expected rate of return for the investment as follows:

\begin{aligned}\text { Expected rate of return } &=(\text { Probability } \times \text { Rate of return })+(\text { Probability } \times \text { Rate of return })+\\&(\text { Probability } \times \text { Rate of retum }) \\=&(0.40 \times 15 \%)+(0.50 \times 10 \%)+(0.10 \times-3 \%) \\=& 0.06+0.05-0.003 \\=& 0.107

Calculate the standard deviation of the investment as follows:

\begin{aligned}\text { Standard deviation }=&\left\{\begin{array}{l} \text { Probability } \left.\times(\text { Return }-\text { Expected return })^{2}\right)+ \\\text { (Probability } \left.\times(\text { Return }-\text { Expected return })^{2}\right)+ \\\text { (Probability } \left.\times(\text { Return }-\text { Expected return })^{2}\right)\end{array}\right.

=\sqrt{\left(0.40 \times(0.15-0.107)^{2}\right)+\left(0.50 \times(0.10-0.107)^{2}\right)+} \\=\sqrt{0.0007396+0.0000245+0.0018769} \\=\sqrt{0.002641} \\=0.05139066063011

7 0
3 years ago
Gabriel is writing a proposal on how to improve efficiency at an Amazon distribution center. In order to structure the proposal
hjlf

Gabriel should speak with decision makers ahead of time to find out what they want and expect.

Explanation:

Many successful proposal writers talk to decision-makers before delivering an official plan, which lets them decide their desires and aspirations and, in effect, helps them arrange the proposal to best satisfy decision-makers.

Advice from the world's leading professional to submit the business sales plan. Comprehension of the definition. Consumer quest. Put the right base. Taking your way brainstorm. Submit the overview of the Management Board. The body of the recommendation should be published. Delete the whole thing without remorse.

3 0
3 years ago
You know about computer security, ethnics and privacy
Assoli18 [71]

what is the question?

5 0
3 years ago
You just started your first job today. Besides your 401K, you are planning to save $3,000 a year for 40 years for your retiremen
umka21 [38]

Answer:

The correct answer is 777.169.56.

Explanation:

According to the scenario, the given data are as follows:

Payment per year (PMT) = $3,000

Time (N) = 40 years

Rate of interest (R)= 8%

So, the future value of the following can be calculated by using the following formula:

Future value = PMT × \frac{((1+r)^{n} -1)}{R}

Now, put the value of the following in the formula. then,

= 3,000 × \frac{((1+8/100)^{40} -1)}{8/100}

= 3,000 × 259.0565

= 777,169.56

Hence, the value in the account after 40 years will be 777,169.56.

6 0
3 years ago
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