Education and Training ! Can anybody help me on this? I don’t understand ☹️...

Your neighborhood self-service laundry is for sale and you consider investing in this business. For the business alone and no ot

Oduvanchick [21]

Answer:

The complete present value calcuation is below.

The net present value of this project is: $77,930.58 (assuming a value for the sale of the business equal to the purchase price).

Explanation:

For this problem, the first and basic question is:

Prepare a net present value calculation for this project. What is the net present value of this project?

<h2>Solution</h2>

The net present value is equal to: the present value of the future cash flows less present value of the investements.

1. Present value of the future cash flows:

The discount factor is equal to 1 / [1 + (1 + r)ⁿ]

Where:

r = 5% = 0.05
n = the number of year

Year Cash flow Discount factor Present value

1 $30,000 1/(1 + 0.05) $30,000/1.05 = $28,571.43

2 $30,000 1/(1 + 0.05)² $30,000/(1.05)² = $27,210.88

3 $30,000 1/(1 + 0.05)³ $30,000/(1.05)³ = $25,915.13

4 $30,000 1/(1 + 0.05)⁴ $30,000/(1.05)⁴ = $24,681.07

5 $30,000 1/(1 + 0.05)⁵ $30,000/(1.05)⁵ = $23,505.78

5 $240,000* 1/(1 + 0.05)⁵ $240,000/(1.05)⁵ = $188,046.28

*For the year 5 you must also consider the value of the business, which is unknow. You should have some information about it. Although unrealistic, at this stage we can just assume a value: let's say it is the same purchase price: $240,000. That is what the last line shows:

The discount the value of the value of the business is:

$240,000 / (1.05)⁵ = $188,046.28

The total present value of the future cash flows is the sum of the present values of all the cash flows:

$28,571.43 + $27,210.88 + $25,915.13 + $24,681.07 + $23,505.78 + $188,046.28 = $317,930.58

2. Calculate the net present value:

Net present value =

= Total present value of future cash flows - investment

Net present value = $317,930.58 - $240,000 = $77,930.58

5 0

2 years ago

Four frequently used targeting strategies are the micromarketing, undifferentiated, differentiated, and __________ targeting str

Dennis_Churaev [7]

Answer:

Concentrated.

Explanation:

Four frequently used targeting strategies are the micromarketing, undifferentiated, differentiated, and concentrated targeting strategies. In micromarketing, we target each and every single customer individually which is also known as customization. In differentiated marketing, we try to differentiate our offerings and target particular market segment with it, whereas in undifferentiated which is also known as mass marketing, we target the whole market with one single offer. In concentrated marketing, we try to capture and target one small segment (niche) which has been ignored and overlooked by the competitors. The main aim here to sell profitably by meeting the needs of that small segment fully.

4 0

3 years ago

In the United States, about $5,200 per person per year is spent on health care, while in Britain the amount is about half that.

riadik2000 [5.3K]

Answer:

The answer is: C) The money spent on health care in the United States is not being used effectively.

Explanation:

American citizens spend twice as much as British citizens on health care per year. Even if certain diseases are more common in the US than in Britain, the overall cost of health care is too expensive in the US (100% difference) to be explained by a greater prevalence of just one or two diseases.

The only possible explanation is that the American health care system is not as efficient as the British health care system, therefore health care is more expensive.

4 0

2 years ago

Who investigates complaints of the Holden Act and takes remedial action as required by law? The Department of Housing and Urban

o-na [289]

Answer:

The Department of Housing and Urban Development

Explanation:

The Holden act or the California Housing Financial Discrimination Act of 1977, states that financial institutions cannot discriminate against people applying for loans or financial assistance, for reasons such as; race, color, ethnicity and religion.

The Holden act is enforced by the Department of Housing and Urban Development.

5 0

3 years ago

Suppose you inherited $275,000 and invested it at 8.25% per year. How much could you withdraw at the end of each of the next 20

navik [9.2K]

Answer:

withdraw amount = 28532.45

so correct option is a. $28,532

Explanation:

given data

present amount = $275,000 bonus

interest rate = 8.25% per year = 0.0825

time period = 20 year

solution

first we get here Cumulative discount factor that is

Cumulative discount factor = $\frac{(1-(1+r)^{-t}}{r}$ .........................1

here r is rate and t is time period

put here value and we will get

Cumulative discount factor = $\frac{(1-(1+0.0825)^{-20}}{0.0825}$

solve it we get

Cumulative discount factor = 9.638148

and now we get so here withdraw amount at the end of each of the next 20 years that is

withdraw amount = Present amount ÷ cumulative discount factor ............2

put here value

withdraw amount = $\frac{275000}{9.638148}$

solve it we get

withdraw amount = 28532.45

so correct option is a. $28,532

8 0

3 years ago