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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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The number of meals to order for a 99% service level is 121 meals.

<h3>What is the service level?</h3>

The service level is the percentage of services that can be provided to guests or customers on a given occasion or within a given period.

It can also describe the percentage of meals that a host estimates to serve her guests at a party.

<h3>Data and Calculations:</h3>

Number of invitations sent out = 150

Number of RSVPs received = 120

Expected number of meals to serve = 100

The safety level of meals to serve = 110

The estimated service level at 110 meals = 90%

The Fiancé's estimated service level to attain = 99%

The number of meals to order for a 99% service level is 121 meals (110/90% x 99%).

Thus, the meals that you should order for a 99% service level is 121 meals.

Learn more about estimating service levels at brainly.com/question/4312911

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2 years ago
A fraud examiner can request a business’s bank records even if the business is not legally obligated to comply.a) trueb) false
galben [10]

Answer:

false

Explanation:

5 0
2 years ago
The five elements of internal control include all of the following except risk assessment. control procedures. information and c
Paul [167]

Here, the five elements include all of the following except- None of these choices are correct

<h3><u>What are the five elements of internal control ?</u></h3>

Different internal control systems function with varying degrees of efficacy. A judgment on an internal control system's effectiveness is made after evaluating if each of the five components -

  • Control Environment-The tone of an institution is defined by the control environment created by the organization's management, which also has an impact on the individuals who work there.
  • Risk Assessment-Every entity must evaluate the many risks it confronts from both internal and external sources. Setting up objectives that are internally consistent and related at various levels is a prerequisite for risk assessment.
  • Control Activities-The rules and practices that guarantee management directions are followed are known as control activities. They aid in ensuring that the required steps are made to address risks preventing the entity from achieving its goals.
  • Information and Communication-Relevant information must be located, recorded, and disseminated in a way and at a pace that makes it possible for recipients to fulfill their duties. Effective communication must flow up, down, and throughout the company in a wide sense.
  • Monitoring-Regular management and supervision tasks, as well as other actions staff members do while carrying out their jobs, constitute ongoing monitoring, which evaluates the effectiveness of internal control system performance.

To know more about the concept of internal control, refer to: brainly.com/question/15318839

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8 0
1 year ago
Specter Co. combines cash and cash equivalents on the balance sheet. Using the following information, determine the amount repor
konstantin123 [22]

Answer:

Total Cash and Cash Equivalents = $14,100

Explanation:

Particulars                 Amount     Reason

Checking Account     $6,000      Readily realizable

Bond Investment          Nil            The bond is due in 20 yrs, hence not readily realizable

U.S. Treasury Bill        $6,500       Due in 1 month

Loan to an Employee     Nil           The loan is for a period of more than 3 months

Currency and Coins    $1,600        They are cash itself

Accounts Receivable     Nil            Accounts receivable is not considered as readily realizable

Total Cash and Cash Equivalents = $14,100

5 0
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Interactive Data Corp. hired Foley as an assistant product manager, and over the next six years, Interactive steadily promoted h
inessss [21]

Answer:

Foley will probably win because he didn't do anything wrong, and he had an implied employment contract with Interactive that stated that he could be fired only after a seven step pre-termination procedure. The handbook guidelines that were given to Foley represent the implied contract, and management assured him that that his performance was adequate.

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3 years ago
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