Answer:
annual withdrawal = $15096.04
Explanation:
given data
present value = $50,000
annual rate = 8%
time = 4 year
to find out
How much can you withdraw each year
solution
we find here annual withdrawal amount that is express as
annual withdrawal = 
................1
here r is rate and t is time
so put here value we get
annual withdrawal = 
annual withdrawal = 
annual withdrawal = $15096.04
Answer:
Percent tax = 45%
Explanation:
Given:
Amount of tax charged = $1,152
Amount of purchase = $2,560
Find:
Percent tax
Computation:
Percent tax = [Amount of tax charged / Amount of purchase]100
Percent tax = [1152 / 2560]100
Percent tax = 45%
Answer:
cost of capital 16%
Explanation:
SML formula:
r_f = 3%
β = 1.3
r_m = 13%
0.03 + 1.3(0.13-0.03)
firm's required return = .16 = 16%
Answer:
Option A is the cheapest.
Explanation:
Giving the following information:
The engineering department estimates costs of $450,000 for the first year. It is estimated that if process and plant alterations are made, the waste treatment cost will decline $43,000 each year. As an alternative, a specialized firm, Hydro-Clean, has offered a contract to process the waste liquids for 15 years for $225,000 per year.
We need to use the following formula and chose the smallest net present value:
NPV= Io +∑ [Cf/(1+i)^n]
Option A:
Io= 407,000
Year cost= 43,000
NPV= 734,061
Option B:
Yearly cost= 225,000
NPV= 1,936,368
If you look at it I think it was be in bounds and you did not have
