Grace is a finance manager at her firm. She wants to make a decision based on the inputs of her group members and their agreemen
1 answer:
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For this case, the total percentage paid for the land is given by:
Then, we can make the following rule of three:
76000 ----------------> 100%
x -----------------------> 83%
From here, we clear the value of x.
The value of x is the amount that was paid for the lot.
We have then:
Answer:
You paid 63080 $ for the lot
Answer:
Discounted Payback period 3 years
Modified Internal rate of return 4.833%
Explanation:
Fernando Designs has following cash flows ,
year 1 : -$900
Year 2 : $500
Year 3 : $500
Year 4 : $500
Using 10% discount factor the cashflows will be,
discounted values
Year 1 : -900
Year 2 : 454.54
Year 3 : 445.45
Year 4 : 4132231
Payback period is -900 + 454.54 +445.45 = 3 years.
Modified Internal rate of return;
= 4.833%