Which example involves a real-world restriction that can affect your decision making process?

Quad Enterprises is considering a new three year expansion project that requires an initial fixed asset investment of 2.32 milli

butalik [34]

Answer:

$128,787.07

Explanation:

Initial investment = $2.32 million = $2,320,000

Depreciation = investment ÷ Useful life

= $2,320,000 ÷ 3

= $773,333.33

Operating cash flows from year 1 to year 3

= [ ( Sales - Costs - Depreciation ) × (1 - tax) ] + Depreciation

= [ ( $1,735,000 - $650,000 - $773,333.33 ) × (1 - 0.21) ] + $773,333.33

= 1019549.99 ≈ 1,019,550

Thus,

NPV = Present value of cash inflows - Present value of cash outflows

Also,

Initial investment = $\frac{1,019,550}{(1 + 0.12)^1} + \frac{1,019,550}{(1 + 0.12)^2} + \frac{1,019,550}{(1 + 0.12)^3}$ - 2,320,000

or

NPV = $128,787.07

6 0

3 years ago

your store sales average 190,000 per month. you're a triple net lease has the following monthly term: rent is 5% of sales, Insur

AURORKA [14]

Answer:

Next years annual lease payments=$129,240

Explanation:

Step 1: Determine next years salary

Since next year, the sales salary will have increase by 7%, we can determine next years annual sales as shown;

F=P(1+R)

where;

F=next years salary

P=this years salary

R=salary increase rate

In our case;

F=unknown, to be determined

P=190,000 per month

P=(190,000×12)=$2,280,000 annually

R=5%=5/100=0.05

replacing;

F=2,280,000(1+0.05)=$2,394,000

Step 2: Determine next years rent

Next years rent=0.05×2,394,000=$119,700

Step 3: Determine insurance, maintenance, utilities and total annual taxes

Total=annual insurance payments+annual maintenance payments+annual utilities payments+annual taxes

Total=(300×12)+(75×12)+(300×12)+(120×12)=$9,540

Step 4: Determine next years annual lease payments

Next years annual lease payments=next years rent payment+ insurance+maintenance+utilities+annual taxes

where;

next years rent payment=$119,700

insurance+maintenance+utilities+annual taxes=$9,540

replacing;

Next years annual lease payments=(119,700+9,540)=$129,240

Next years annual lease payments=$129,240

8 0

4 years ago

What are 3 helpful habits (to prepare for a big test)? Plz be specific.

Alenkinab [10]

Hello!

Here are some tips:

• Get a good night's sleep. Believe me, if I don't get at least 7 hours of sleep before a big test, my mind won't function properly and I'll forget everything I'd practised. So, please, get enough sleep.

• Eat something good before the test. It'll help you. When your belly is full, almost everything is okay! :D Seriously, eat enough so that you wouldn't get hungry during the test, and you'll have less to think about. Also, make sure the food doesn't contain too much sugar.

• Take breaks when you're studying. Do NOT cram all those facts in your head, because they won't stay there. Set up a schedule and designate a specific part of every day to studying, and it shouldn't be longer than half an hour.

• Here's a bonus tip I've learned from past experiences. Please don't use TVs, phones, and anything that will distract you. If you need a calculator, USE A CALCULATOR, and not an online one. Otherwise you won't be as productive and it'll definitely distract you.

6 0

3 years ago

Read 2 more answers

The ultimate test of the value of a corporate-level strategy is whether the:______.

Mariana [72]

Answer:

Option D. businesses in the portfolio are worth more under the management of the company in question than they would be under any other ownership.

Explanation:

The reason is that the corporate strategy manages the subsidiaries and the parent company as well to drive maximum value from the whole business efficiently by effective strategies. The subsidiaries that were generating profits after acquisition of $5000m and before acquisition of $4500m means that the corporate strategy was effectively implemented which helped the whole parent and subsidiary to drive maximum benefits out of its owned assets.

3 0

3 years ago

Read 2 more answers

Is a business driver which focuses on ways to achieve better efficiencies to increase profits.

pickupchik [31]

The correct answer for this question is this one: "YES" A business driver which focuses on ways to achieve better efficiencies to increase profits. In this way, that business driver is playing game securely. Hope this helps answer your question and have a nice day ahead.

5 0

3 years ago

Read 2 more answers