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AysviL [449]
3 years ago
10

A commercial real estate developer plans to borrow money to finance an upscale mall in an exclusive area of the city. The develo

per plans to get a loan that will be repaid with uniform payments of $475,000 beginning in year 2 and ending in year 16. How much will a bank be willing to loan at an interest rate of 7% per year

Business
1 answer:
Nutka1998 [239]3 years ago
5 0

Answer:

$4,043,232.85

Explanation:

First we have to compute the present value which is attached in the spreadsheet

Given that,  

Future value = $0

Rate of interest = 7%

NPER = 15 years

PMT = $475,000

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, after solving this, the present value is $4,326,259.15

No the loan amount would be

= (Present value) ÷ (1 + interest rate)

=  $4,326,259.15  ÷ 1.07

= $4,043,232.85

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Which estimating technique decomposes the work into lower, more detailed pieces, preferably the lowest level of WBS work element
elixir [45]

Answer: (C) Bottom-up estimating

Explanation:

The bottom-up estimating is one of technique used by the manager or lead of the project department in the project management process.

By using this technique the manager makes an estimated process for assigning the different types of task in project management and it also divide the task into the different groups so that they work done more efficiently and accurately.

According to the given question, the bottom-up estimating technique are used for decomposes the work into the detailed format.  

Therefore, Option (C) is correct.

4 0
3 years ago
The following information was available for the year ended December 31, 2019: Earnings before interest and taxes (operating inco
Charra [1.4K]

Answer:

Debt ratio = 56%

Times Interest earned = 5 times

Explanation:

<em>The debt ratio is the proportion of the total assets amount that is financed by debt . It is a measure of financial risk. A company with a high debt ratio (in excess of 50%) is considered financially risky. That is may not be able to meet its short term financial obligations</em>

Debt ratio = Debt/Total assets × 100

              = (140,000/250,000)× 100

              = 56%

Times interest earned is the number of times the earning before interest and taxes (EBIT) can pay the interest obligation. It is a measure of financial risk. For example, a company with a ratio of less than 3 times might be considered as potentially unable to meets its loan obligation

Times interest earned = Earnings before interest and tax (EBIT)/Interest expense

= 75,000/15,000

= 5 times.

6 0
3 years ago
Experience the Tour de France (ETF) is a specialty travel agent. They arrange vacations for amateur cyclists who want to experie
OlgaM077 [116]

Answer:

18 minutes.

Explanation:

The standard deviation for the call time is 50 minutes while the average call duration is 25 minutes. The caller has to wait for sometime before the agent answers it because they have 4 agents who take up the calls from the clients. A call arrives every 20 minutes with a standard deviation of 20 minutes. In the given scenario the waiting time can be calculated using the formula below:

t = ( Ф * standard deviation + average call duration * standard deviation )

Solving the equation we get 18 minutes.

8 0
2 years ago
Dunbarn Co. had the following activities during the year: Purchase of inventory $120,000 Purchase of equipment 80,000 Purchase o
aleksklad [387]

Answer:

cash used by investing activities 60,000

Explanation:

<u><em>Operating:</em></u>

purchase of inventory  (120,000)

<u><em>Investing:</em></u>

acquisition of available-for-sale securities:  (60,000)

<u><em>Financing:</em></u>

Issuance of common stock 150,000

Purchase of treasury stock (70,000)

The investing activities will be those which represent a use of cash in securities, shares and note receivables and the cash inflow generate from this investment.

5 0
3 years ago
Read 2 more answers
Use the following information to calculate for the year ended December 31, 2018
Anastasy [175]

Answer:

a. $13,000

b. $17,000

c. $27,000

Explanation:

a= Net income (loss) = Service revenue - Other operating expenses

Net income (loss) = $25,000 - $12,000

Net income (loss) = $13,000

b. Ending retained earnings = Beginning retained earnings + Net income - Dividends

Ending retained earnings = $5,000 + $13,000 - $1,000

Ending retained earnings = $17,000

c. Total assets = Cash + Accounts receivable + Supplies + Equipment

Total assets = $15,000 + $3,000 + $3,000 + $6,000

Total assets = $27,000

8 0
3 years ago
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