Answer:
The Expected Average Rate of Return for the proposed investment is 30%.
Explanation:
This can be calculated as follows:
Average Investment = (Initial Cost + Residual Value) / 2 = ($5,330,000 + $0) / 2 = $2,665,000
Expected average annual income = Expected total net income / Useful life = $15,990,000 / 20 = $799,500
Expected Average Rate of Return = Estimated Average Annual Income / Average Investment = $799,500 / $2,665,000 = 0.30, or 30%
Finance companies are reliable institutions because of its capacity to <span>supply credits for the purchase of consumer goods and services by consumers and even other businesses. In this case, they can range from small institutions to large ones. Answer is D</span>
Answer:
$5,681
Explanation:
As this is a residential property the Modified Accelerated Cost Recovery System (MACRS) depreciation rate is applicable.
Also as it was sold during the month, the mid month convention is also in effect which states that when an asset is sold during the month, only 15 days of that month are considered for depreciation assuming a 30 day month.
The straight line rate for MACRS after the first year for this residential property is 3.636% per annum.
The asset didn't last the entire year so this needs to be accounted for.
Out of 12 months it lasted 7 months till July and 15 days in August which means it lasted 7.5/12 of the year.
Depreciation for the year is, therefore,
= 250,000 * 3.636% * 7.5/12
= $5,681
Answer: outsourced
Explanation:
Outsourcing simply meabs the business practice whereby a company hires another party outside the company to perform a particular activity related to it's production for them which the company could have done itself and performed in-house.
Outsourcing is done in order to reduce cost or focus on other main areas in the company. Since Marc Adler gave the creation of its website to another party, this is known as outsourcing.
