The approximate internal rate of return for this investment is $0.054.
<h3><u>
What is rate of return?</u></h3>
- The net gain or loss of an investment over a given time period, stated as a percentage of the investment's starting cost, is known as a rate of return (RoR).
- You determine the percentage change from the start of the period to the end when computing the rate of return.
- Any type of investment instrument, including real estate, bonds, equities, and fine art, can be subject to a rate of return (RoR).
Any asset can be used with the RoR as long as it is purchased once and generates cash flow at some point in the future. The attractiveness of various investments can be determined, in part, by comparing their historical rates of return to those of comparable assets.
We have, (Net Annual cash inflow x PV of an Annuity of 1 at 10%) - Initial Investment = Net present value (find closest to zero))
($17,514 x 4.111) = $72000.054 - $72,000 = $0.054 (closest to zero).
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Answer:
$5528000
Explanation:
Solution
Given that:
Now,
The 2018 estate tax exemption 11180000$ above that the estate inherited are taxed at 40%.
So,
25000000-11180000 = taxable estate 13820000$
The estate tax due= 13820000*40%
= 5528000$
Note: This is reference from Exhibit 25-1 and Exhibit 25-2.
Answer with its Explanation:
Transaction 1: The purchase of equipment is increase in the fixed assets and as the amount paid is in cash, the decrease in cash asset will also be with the same amount. This means the net effect on assets will be zero.
Accounting Equation is given as under:
Fixed Assets + Current Asset = Equity + Liability
Equipment 318,770 - Cash $318,770 = Zero Net Effect
Transaction 2: The increase in the equity will increase the current asset as well here, which means:
Fixed Assets + Current Asset = Equity + Liability
Current Assets + $139,050 = Issued common stock + $139,050
Transaction 3: The purchase of inventory on account means that the current asset would be increased and the payables will increase with the same amount. The effect on the accounting equation is given as under:
Fixed Assets + Current Asset = Equity + Liability
Current Asset + $70,94 = Current liabilities + $70,940
Based on the various costs paid at closing, the total amount that was paid was <u>d. $7,499.</u>
<h3>Commission paid to agent</h3>
= Cost of house x Commission
= 3% x 180,000
= $5,550
<h3>Total amount paid at closing</h3>
= Commission + Loan origination + Title insurance +Attorney fees + Appraisal cost + Recording fees
= 5,550 + 275 + 528 + 750 + 275 + 121
= $7,499
In conclusion, the total paid at closing is $7,499.
Find out more on closing costs at brainly.com/question/26133271.
Answer:
$ 43,135.67
Explanation:
The amount required today is the present value of the future expected amount in 11 years computed using the present value formula below:
PV=FV/(1+r)^n*m
PV=the unknown present value
FV=$76,000
r=monthly interest rate=0.43%
n=number of years=11
m=number of months in 1 year=12
PV=$76,000/(1+0.43%)^(11*12)
PV=$76,000/(1+0.43%)^132
PV=$76,000/1.761883042
PV=$ 43,135.67
