Answer:
Land 594,500
Explanation:
We must include all cost necessary to acquire the land and lelave it ready to use.
But, the demolition cost are associate with the old warehouse thus, as thsis asset is being destroyed It will be considered period cost, It will not be capitalized through land.
Acquisition cost 550,000
broker commission 35,000
title insurance 2,500
closing cost <u> 7,000 </u>
Total cost 594,500
Answer:
a) Net present value of investment = $86,036
b) Since the Net present value is positive thus, Beyer should accept the investment
Explanation:
Data provided in the question:
Cost of the asset = $215,000
Rate of return = 12% = 0.12
Now,
Present Value of Net Cash Flows = Net cash flow × Present value factor
also,
Present value factor = (1 + rate)⁻ⁿ
here,
n is the year
thus,
Year 1 Net cash flows Present value factor Present value
1 77,000 0.89286 68,750
2 54,000 0.79719 43,048
3 82,000 0.71178 58,366
4 172,000 0.63552 109,309
5 38,000 0.56743 21,562
Total 423,000 301,036
a) Net present value of investment = Total present value - Amount invested
= 301,036 - 215,000
= $86,036
b) Since the Net present value is positive thus, Beyer should accept the investment
Answer:
The nominal interest rate refers to the interest rate, unadjusted for inflation.
The real interest rate equals the nominal interest rate minus the inflation rate.
Explanation:
The nominal interest rate is equal to the real interest rate plus the expected inflation rate. As a result, the nominal interest rate is an estimated figure, that tries to account for inflation, but because inflation is a number that cannot be fully predicted, it is a rate that is less accurate than the real interest rate, which takes into account the real inflation rate.
Because inflation is a variable that determines whether the investors earn a return or not (if the inflation rate is higher than the real interest rate, the investors actually lose closely), investors must watch closely this rate, because it is the one that actually determines the future of their investments.
Answer:
Operating Machinery
Explanation:
The correct option is - Operating Machinery
Reason -
For a job,
Employers want to make sure you are qualified for the job by having the appropriate degree,
But they also need to know if you have the skill set too.
The top 5 Employment skills are :
- Critical thinking and problem solving
- Teamwork and collaboration
- Professionalism and strong work ethic
- Oral and written communications skills
- Leadership
So,
Communication
, Problem-solving
, Working in Teams are examples of an Employability skill
But Operating Machinery is not an employability skill .