Answer:
We require 9.67% return per year to achieve 300,000 in the future
Explanation:
we need to solve for the rate at which a current value of 57,000 dollars will generate 300,000 dollars after 18 years:
Principal 57,000.00
time 18.00
Amount 300,000
![r=\sqrt[18]{300,000/57,000} -1](https://tex.z-dn.net/?f=r%3D%5Csqrt%5B18%5D%7B300%2C000%2F57%2C000%7D%20-1)
r = 0.096653034
We know that the total cost will be 30 lb * $3/lb = $90. We can thus set up an equation such that: 90 = 3.5*b + 2*(30-b), where b is the weight of blackberries and 30-b represents that which is not blackberries, that is, the blueberries.
We solve the equation as:
90 = 3.5b +60 -2b = 1.5b + 60
30 = 1.5b
b = 20
Thus 20 lbs of blackberries (and 10 lbs of blueberries) are needed.
Answer:
<u>Mortgage liaiblity today: </u>424.092,31
Explanation:
We need to solve for mortage principal then;
how much do we amortize during four years and eight months old.
Last, decrease from the principal to know the current mortgage liability:
C 3,120
time 360 (30 years x 12 months per year)
rate 0.00625
PV $446,214.9972
Interest at first period:
446,215 x 0.00625 = 2.788,84
<u>Amortization at first period:</u>
3120 - 2,788.84 = 331.16
<u>Total Amount amortized:</u> will be the future value of the annuity of this first depreication during the life of the mortgage
C 331
time 56
rate 0.00625
Total Amortized: $22,122.6919
<u>Mortgage liaiblity today:</u>
446,215 - 22,122.69 = 424.092,31
Answer:
The answer is B. After the income statement and before the statement of owner's equity.
Explanation:
Income Statement shows the profitability of a business over a period of time.
Balance sheet shows the financial position of a business at the end of the period.
Statement of owner's equity shows the changes in owner's equity over a period of time.
Balance sheet is prepared after the income statement because profit for the year(net profit) in income statement is a line item under owner's equity in balance sheet. It must be known and the figure(net income) must be transferred to balance sheet (equity).
It is prepared before the statement of owner's equity because changes in equity (difference between opening and closing balance under equity in balance sheet) is a line item under changes in owner's equity. Also, issues of shares(in balance sheet) is a line item under statement of changes in owner's equity.
Answer:
Multiple IRRs:
Said another way, Multiple IRRs occur when a project has more than one <em>internal rate of return.</em> The problem arises where a project has non-normal cash flow (non-conventional cash flow pattern).
Internal rate of return (IRR) is one of the most commonly used capital budgeting tools. Investors make decisions by comparing the IRR of the project under consideration with the <em>hurdle rate</em>. If the IRR is greater than the hurdle rate, the project is accepted, otherwise it is rejected. When there are more than two IRRs, it is not exactly clear which IRR to compare with the hurdle rate.
Hurdle rate is the minimum required rate of return which businesses use as a benchmark to decide whether to invest in a project or not.
<em>So a typical situation which can generate negative cashflows which can in turn lead to multiple IRRs towards the end of the project is where the conditions of investment become adverse towards the end of the project.</em>
Imagine that toward the end of the lifecycle of a project, a forecasted increase external costs such as Interest Rate, influenced by government policies translates to an erosion of the bottom line generated by the business in that year.
Period 0 1 3 3 4 5
Unconventional cash flows ($)-19,000 16,000 16,000 6,000 6,000 -52,000
The series is non-conventional cash-flow pattern, which has two sign changes. This is the range in which the net present value of the non-conventional cash flow series is positive. The multiple IRR problem poses a series problem to analysts because the decision is not obvious.
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