Answer:
Second year :
Nominal rate = 8.15%
Real rate = 5%
Third year :
Nominal rate = 6.00%
Real rate = 4.95%
Explanation:
Nominal return =(Interest + price change) / initial price
Real rate of return = (1 + nominal rate) / (1 + inflation) - 1
Second year:
Nominal return = [53.05 + (1060.90 - 1030)]÷ 1030
(53.05 + 30.90) ÷ 1030 = 0.0815 = 8.15%
Real rate
[(1 + 0.0815) ÷ (1 + 0.03)] - 1
(1.0815 ÷ 1.03) - 1 = 0.05 = 5%
THIRD YEAR:
Nominal return = [53.58 + (1071.51 - 1060.90)]÷ 1060.90
(53.05 + 10.61) ÷ 1060.90 = 0.060 = 6.00%
Real rate
[(1 + 0.060) ÷ (1 + 0.01)] - 1
(1.060 ÷ 1.01) - 1 = 0.0495 = 4.95%
Answer: governmental, institutional, and reseller purposes.
Your mom
Answer:
The answer is "21,622.98".
Explanation:
In the given question some information is missing, which can be defined in the given attachment.
To calculate the first cost we first subtract B cost is to X.
NPV = Cash Flow of the sum of PV amount
The value of Option A or NPV = -24,575.88
The value of Option B or NPV:
The value of Option B or NPV = -X -2952.9
As demanded
In Option B the value of NPV = In Option A the value of NPV
Answer:
To make balance sheet we first have to calculate net income/net profit for the year.
<em><u>Net profit Calculation</u></em>
Service revenue $ 13,524
Insurance expense ($ 718
)
Depreciation expense ($ 4,876)
Interest expense ($ 2,392)
Profit $ 5,538
<em><u></u></em>
Balance Sheet
Asset
Non-Current Asset
Land $56,304
Buildings $97,336
Accumulated depreciation—buildings ($41,952)
Equipment $75,808
Accumulated depreciation—equipment ($17,222)
Total non Current Asset $170,274
Current Asset
Cash $10,893
Accounts receivable $11,592
Prepaid insurance $2,944
Current Asset $25,429
Total Asset $195,703
Equity
Common stock $55,200
Retain Earning (36,801+5,538) $42,339
Total Equity $97,539
Liability
Non-Current Liability
Current Liability
Accounts payable $8,740
Notes payable $86,112
Interest payable $3,312
Total Current Liability $98,164
Total Liability + Equity $195,703
