Our denials to divine nature and lack of appreciation of our connection to all things
Answer: 13.26%
Explanation:
Year 0 Investment = $385,000
Incremental Cash flow every year = Cashflow if owned - Cashflow if leased
= 164,000 - 133,000
= $31,500
Incremental cashflow in Year 10 = Incremental Cashflow + Cashflow from sale of property
= 31,500 + 750,000
= $781,500
Using Excel and the IRR function, the rate is = 13.26%
Answer:
$362,000
Explanation:
The market value of the building is an opportunity cost that is avoidable.
Ramos would avoid the real estate taxes if it sold the building.
Therefore,
Amount of avoidable cost associated with the segment:
= Annual advertising expense + Market value of the building (opportunity cost) + Annual maintenance costs on equipment + Annual real estate taxes on the building + Annual supervisory salaries
= $ 70,000 + $80,000 + $56,000 + $6,000 + $150,000
= $362,000
The selling price of the car purchased by Evita is $19,000.00 with 25.36% interest per year for 5 years.