Answer: A sole proprietorship, also known as the sole trader, individual entrepreneurship or proprietorship, is a type of enterprise that is owned and run by one person and in which there is no legal distinction between the owner and the business entity.
$695 per adult
$347.50 per child under 18<span>
Maximum: $2,085</span>
Answer:
The net present value of the machine is $5530
Explanation:
Data provided in the question:
Cost of the equipment = $84,000
Annual after-tax net income from the equipment after deducting depreciation = $3,000
Depreciation = $28,000
Useful life = 3 years
Required return on investment = 9% = 0.09
Now,
After-tax cash flow = After-tax net income + Depreciation
= $3,000 + $28,000
= $31,000
Therefore,
Net Present Value = Present value of cash flow - Investment
= ( $31,000 × PVIFA(11%, 3)
) - $84,000
= ( $31,000 × 2.5313 ) - $84,000
= $78470.3 - $84,000
= -$5529.7 ≈ - $5530
hence,
The net present value of the machine is $5530
Answer:
11.15%
Explanation:
Given that
Risk free rate of return= 5%
Beta = 1.69
Expected rate of return = 15.4%
As per capital asset pricing model
Expected rate of return = Risk free rate of return + Beta × (Market rate of return - risk free rate of return)
15.4% = 5% + 1.69 × (Market rate of return - 5%)
After solving this
Market rate of return = 11.15%
