Answer:
The value that should be placed when analyzing the option of using the house as a professional office is $242,880
Explanation:
In calculating cash flow of a project, opportunity cost is very important hence be made part of the cash flow
Incremental cash flow = Appraisal on the house - Real estate fees
=$264,000 - $21,120
= $242,880
Answer:
greater; greater
Explanation:
The greater the percentage of an MNC's business conducted by its foreign subsidiaries, the greater the percentage of a given financial statement item that is susceptible to translation exposure.
Answer:
a) $3077
b) The owner should make this investment because the marginal benefit is greater than the marginal cost
Explanation:
Given data :
Total cost = $2000
depreciation rate = 8% per year
expected increase in revenue (CF ) = $400
interest rate = 5%
a) Determine the present value of the stream of revenue due to the upgrades
= CF / ( 1 + r ) ^t where ( 1 + r )^t = 13%
= 400 / 13%
= $3077
b) The owner should make this investment because the marginal benefit is greater than the marginal cost