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givi [52]
3 years ago
11

g An investor has invested $600,000 in a new rental property. Her estimated annual costs are $16,000 and annual revenues are $48

,000. What rate of return per year will investors make over a 30 year-period if the property can be sold for $500,000 at the end of the 30-year period
Business
1 answer:
Tamiku [17]3 years ago
5 0

Answer:

5.09%

Explanation:

The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.

IRR can be calculated using a financial calculator.

Cash flow in year 0 = $-600,000

Cash flow each year from year 1 to 29 = $48,000 - $16,000 = $32,000

Cash flow in year 30 = $32,000 + $500,000 = $532,000

IRR = 5.09%

To find the IRR using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.

I hope my answer helps you

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Vinil7 [7]

Answer:

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Amount paid in US will be Income * Tax rate in US - Tax paid in host country (Since the tax rate in host country is lower than USA) = $100,000*35% - $25,000 = $35,000 - $25,000 = $10,000

7 0
3 years ago
rick's pawn shop issued 11% bonds, dated january 1, with a face amount of $400,000 on january 1, 2022. the bonds sold for $370,0
geniusboy [140]

An unrealized gain of $5,412 from the change in the fair value of the debt.

<h3>How does general interest rate risk work?</h3>

Interest-rate risk (IRR) is the exposure of a financial institution to unfavorable changes in interest rates. Accepting this risk is common practice in the banking industry and can be a key driver of profitability and shareholder value.

Explanation:

Given that the bond's face value is $400 000

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Net income and OCI are both included in comprehensive income.

To learn more about Interest-rate risk (IRR) refer to:

brainly.com/question/20715710

#SPJ4

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Answer:

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I lost some brain cells O.O

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