Answer:
Subtract vacancy and credit costs from potential gross income
Explanation:
Effective gross income (EGI) is actually the ratio or relationship that exists between the sale price of a property and effective gross income of that same property.
It is the potential gross income added to other income when vacancy and credit costs are subtracted from it.
EGI is used to determine the value of a rental property and the cash that the property generates.
I am pretty sure it's to decide if the applicant is creditworthy. ( Makes most sense. Did research too.) :)
1 share of exxon, pennys pickles isnt exactly the most booming market right now
Answer: 2 kanban card sets will be needed.
Explanation: 20% of 10 gauges gives the safety inventory stock.
This will be 20/100 ×10=2
But 10 gauges are produced per hour out of which 2 will be kept as safety inventory stock, making it to be 10-2=8gauges per hour.
Number of kanban cards used for transporting gauges 8/5=1.6
1.6= 2to the nearest whole number.
Answer:
Yes we should go with this project because it has a positive NPV of $4,350
Explanation:
We need to calculate the net present value of the machine to decide whether to invest in the machine or not.
As per Given Data
Costs $270,000
Cash Inflows
Year 2 $100,000
Year 3 $150,000
Year 4 $75,000
Interest Rate = 6%
Net Present Value
As we know Net Present value is calculated by discounting each years cash flows using using the Weighted Average cost of Capital.
Year Cash Inflows Discount factor 13% Present values
Year 0 $(270,000) (1+6%)^-0 $(270,000)
Year 2 $100,000 (1+6%)^-2 $89,000
Year 3 $150,000 (1+6%)^-3 $125,943
Year 4 $75,000 (1+6%)^-4 <u>$59,407 </u>
Net present value <u>$4,350 </u>
