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AlexFokin [52]
3 years ago
11

Suppose that annual income from a rental property is expected to start at ​$1,100 per year and decrease at a uniform amount of ​

$45 each year after the first year for the 15​-year expected life of the property. The investment cost is ​$7,000​, and i is 9​% per year. Is this a good​ investment? Assume that the investment occurs at time zero​ (now) and that the annual income is first received at EOY one.
Business
1 answer:
murzikaleks [220]3 years ago
4 0

Answer:

It is not a good investment because  

∑ yearly incomes < Final cost of investment

i.e.  $11775  <  $16450

Explanation:

Cost of investment ( principal ) = $7000

Interest rate ( r ) = 9% = 0.09

tenure ( t ) = 15 years

hence Final cost of investment ( A ) = P + Prt

A = 7000 + ( 7000 * 0.09 * 15 ) = $16450

Annual incomes

First year = $1100

2nd year = $1100 - $45 = $ 1055

3rd year = $1055 - $45 = $1010

4th year = $1010 - $45 = $965

5th year = $965 - $45 = $920

6th year = $920 - $45 = $875

7th year = $875 - $45 = $830

8th year = $830 - $45 = $785

9th year = $785 - $45 = $740

10th year = $740 - $45 = $695

11th year = $695 - $45 = $650

12th year = $650 - $45 = $605

13th year = $605 - $45 = $560

14th year = $560 - $45 = $515

15th year = $515 - $45 = $470

Total annual income = ∑ yearly incomes = $11775

It is not a good investment because  

∑ yearly incomes < Final cost of investment

i.e.  $11775  <  $16450

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Which country is a good example of a high present rate of investment and a low present rate of consumer goods consumption?
anzhelika [568]

Answer:

<u>India.</u>

Explanation:

India is a country with an emerging economy that attracts a lot of investment due to its significant annual economic growth, government incentives, low taxes and little red tape.

The country stands out as the most populous democracy in the world, and despite having a global mentality for business and high investment rates, the second largest population in the world presents serious social problems, such as the caste system, which prevents Indians from having a better quality of life. There is also corruption, social inequality, religious and border disputes. All of these factors contribute to the fact that despite high investments and growth, India is a country marked by social inequality and extreme poverty for a large part of the population, which configures little access to consumer goods for most Indians.

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3 years ago
Private placements can be advantageous, compared to public issue, because: I. Private placements are cheaper to market than publ
Maurinko [17]

Answer:

Private placements

Explanation:

private placements are cheaper to market than public issues

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3 years ago
Many organizations are concerned about the rising cost of employee benefits and question their value to the organization and to
shepuryov [24]

Answer:

Benefits that are of most prominent incentive to the employees and to the organization are as per the following:  

  • The employees are obligated to get benefits that are variable and are a piece of salary bundle. These can incorporate house lease remittance, travel recompense, training stipend and advancement of the worker youngster and so forth.  
  • Health, life and handicap benefits likewise to be incorporated into the salary. Phone recompense if the activity requires making a great deal of calls to different clients.  
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3 years ago
In _____________ negotiation, the agreement involves no loss to either party.
Sophie [7]
<span>Integrative negotiation </span>
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2 years ago
Daniel, age 38, is single and has the following income and expenses in 2020:
Sliva [168]

Answer:

See below

Explanation:

a. Classify the following expenses as either " Deductible for AGI " , " Deductible from AGI " , or " not deductible".

Particulars

•Payment of Alimony ----- Not deductible

•Mortgage interest on residence---Deductible from AGI

•Property tax on residence------Deductible from AGI

•Contribution to traditional IRA (assume the amount is fully Deductible)----Deductible for AGI

Contribution to United Church-------Deductible from AGI

Loss on the sale of real estate(held for investment)-------Deductible for AGI

Medical expenses------deductible from AGI

State income tax-----------deductible from AGI

Federal income tax-------Not deductible

What is Daniel's Gross income and his AGI

I. Gross income

Salary income + net rent income + dividend income

$165,000 + $12,500 + $2,900

$180,400

ii AGI

Gross income - (Contribution to traditional IRA + loss on sale of real estate)

$180,400 - ($4,800 + $575)

$175,025

b. Because Daniel's total itemized deductions (after any limitations) are $14,900 (Please see workings below), he would benefit from itemizing his deductions from AGI

•Workings

Mortgage interest on residence $8,300

Property tax on residence

$3,400

Contribution to United Church

$1,700

State income tax

$1,500

Medical expenses[Medical expenses that are allowed for tax deductions should not be more than 10% Adjusted gross income

$0

Total itemized deductions

$14,900

3 0
3 years ago
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