Answer:
Explanation:
Giving the following information:
The firm must pay $6 million now and $4 million in one year. Two years from now the project is expected to pay back $5 million, and three years from now it is expected to pay back another $10 million.
Io= -6,000,000
1= 4,000,000
2= 5,000,000
3= 10,000,000
i=0.25
We need to use the following formula:
NPV= -Io + ∑[Cf/(1+i)^n]
Cf= cash flow
NPV= 5,520,000
The firm should do the project when the net present value is positive.
Answer:
A. Deductible Amount = $125
This is because legal advice is fully deductible while there are no deductions available for fines.
B. Deductible Amount = $ 795
This is because the amount used in reserving parking is fully deductible, while the amount for ticket for her children is personal and hence doesnt fall under deductibles.
C. Deductible Amounts = $0
For all and any political purpose, deductibles doesnt apply. Whether it is in form of cash or kind. Hence, there is no deductions in this case.
Answer:
Total interest paid = $606.63
Explanation:
First calculate the monthly payment for first six months
Monthly interest for first 6 months =.006/12=.0005
= 6500*(1.0005)^6
=6519.52
Interest rate for next six months
=17.37%/12=1.45%
(1.0145)^6=1.090054
=6519.52*(1+.0145)^6
=7106.63
Total interest paid = 7106.63-6500
Total interest paid = 606.63
Answer:
the number of gas grills must Gelbart Company sell to break even is 41,680 gas grills
Explanation:
The computation of the number of gas grills must Gelbart Company sell to break even is given below:
= Fixed cost ÷ contribution margin per unit
= $32,510,400 ÷ ($1,300 - $520)
= $32,510,400 ÷ $780
= 41,680 gas grills
Hence, the number of gas grills must Gelbart Company sell to break even is 41,680 gas grills
Answer:
B/E ratio 1.2356
Explanation:
300,000 - 43,000 = 257,000
257,000/0.04 = 6,425,000
initial cost 2,200,000
unkeep cost 120,000/0.04 = 3,000,000
6,425,000/(2,200,000+3,000,000) = 1.235576923
Note we are given a discount rate, which means the upkeep, benefits and disbenefits are perpetual.
