Answer:
The average return of the project is 15%
paybakc 6.67 years
Explanation:
Sean should divide the anual profit over the project cost ot get the average return
30,000 / 200,000 = 0.15
0.15 = 15%
Sean may also want to know the payback period:
so we do investment / income:
200,000 / 30,000 = 6.67
The firm will recover the cost of 200,000 after 6.67 years
Answer:
$201,866.28
Explanation:
Using a financial calculator, input the following to calculate the the amount that would be required today to meet the goal; calculate present value (PV).
Future value ; FV = 1,000,000
Recurring payment PMT = 0
Total duration of the investment ; N = 8
Annual interest rate; I/Y = 9%
then compute the present value ; CPT PV = $501,866.28
Since she already has $300,000, find the balance;
Additional money needed = $501,866.28 -$300,000 = $201,866.28
Answer:
The importance of stocktaking is clear. It allows you to regularly monitor and increase gross profit, reduce loss, improve control of allowances, and reduce waste
Explanation:
Answer:
Net income= $33 million
Explanation:
A leveraged buyout is a buyout of an entity by it's own managers/board members mostly through debt financing. Now the expected sales after the buyout is 500 million, we are asked to calculate net income only in the first year. First of all lets see what net income is. Net income is the remaining amount of income after having paid all the expenses which is mostly the residual income available for either distribution to shareholders or transfer to retained earnings.
The formula for net income is as follows:
Net income/profit= Sales revenue - COGS - Administrative expenses- depreciation and amortization - Interest expense - Tax
Let first calculate COGS & other administrative expense, depreciation and interest expenses first.
COGS & ADMIN: 500*0.6=300 m
Depreciation: 500*0.05 =25m
Interest expense for the year: 1500 * 0.08= 120m
Now lets substitute values in the formula mentioned above:
Income before taxes: 500m - 300m - 25m - 120m
Income before taxes: 55m
Income after taxes; 55m - 22m (taxes= 55*40%)
Net income= $33 million
Gross income, or gross profit I think
