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PolarNik [594]
3 years ago
13

The additional dining space will occupy space next to Olaf’s that was recently rented to a tenant. By claiming the space for the

project, the firm will no longer be able to rent the space at $1,000 per month. Kristoff wants to evaluate this project over a four year time period. The after-tax operating profit margin on the renting the space is 30%. If Kristoff wants a 9% APR on Olaf cash flows, what is the present value of this opportunity cost? (rent is paid as the beginning of the month)
Business
1 answer:
Illusion [34]3 years ago
3 0

Answer:

$12,146

Explanation:

The computation of present value of this opportunity cost is shown below:-

Net After tax Operating Profit Per month = Rent space per month × Profit margin on the renting the space percentage

= $1,000 × 30%

= $300

Project is for 4 Years

Total months = 4 × 12

= 48 Months

Interest Rate Per month = 9% ÷ 12

= 0.75%

As per the question the Rent is Received at the start of the month

So Present Value of this opportunity cost = $300 (1 + PVAF (0.75%,47))

= $300 × ( 1 + 39.486)

= $12,145.85

= $12,146

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Answer:

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6 0
3 years ago
Cost-volume-profit analysis is based on necessary assumptions. Which of the following is not one of these assumptions? Select on
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Answer:

b. Relevant range includes all possible levels of activity that a company might experience.

Explanation:

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3 years ago
___________ refers to the short distance movement that usually takes place within the confines of a building such as a plant or
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d. materials handling.

Explanation:

That's the correct answer. Hope that helps

3 0
2 years ago
Company officers will have direct involvement with their assigned personnel and should have knowledge of organizational policies
musickatia [10]

The knowledge that company officers have over their assigned personnel will include:

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Company officers will be expected to directly interact with the personnel under them.

To do this, they are to have knowledge of certain things such as performance evaluations, substance abuse, and duty assignments. This would help them direct personnel better.

Options for this question are:

  • Duty assignments.
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Find out more on the duties of company officers/ management at brainly.com/question/3792248.

#SPJ1

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2 years ago
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Answer:

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4 0
3 years ago
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