Start Discovering Solved Questions and Your Course Assignments
TextBooks Included
Active Tutors
Asked Questions
Answered Questions
How much more will you gain or lose per year if you invest $1,000 at the local bank instead of at the out-of-town bank?
What annual effective rates of interest had the bank given him if they compounded the interest quarterly? What if they compounded annually?
A credit card company announces that its interest rate is 1.5% per month. What is the corresponding effective annual interest rate?
Mr. Shop purchases a pizza shop for $120,000. Its operation will result in a net income of $15,000/Yr. Draw the cash flow diagram for this project.
How is the rate of inflation measured? What is the difference between anticipated and unanticipated inflation?
Why could NKT Flexibles not just undertake all R&D in-house? What is the reaction among employees if R&D tasks are outsourced?
Mr. Futurology, has invested $9M in a fast-food franchise chain. If his cost of money is 10%, what is the minimum price he should sell the franchise for?
How many states are in each country. Talk about the different Nationalities.
How much per year at an interest rate of 7% should you save for your newborn baby so that he can go to a four-year college at the age of 17?
How much of the principal is left at the end of the fifth year? If their MARR is 10%, what should be their minimum asking price for the house?
If he has a MARR of 10%, how much should he charge for rent per month to recover his investment in 10 years?
If he has the money and his opportunity cost of money is 10% (I=10%), which proposal do you advise him to accept? Why? Explain.
This equalization is not necessary when using EUAW methods. Why? Can you show this using a cash flow diagram?
The investor has MARR of 10%. Use the rate of return method to make a recommendation to him. Explain your reasons for recommendation.
If he has the money and his opportunity cost of money is 10% (i=10%), would you advise him to invest or not? Yes? No? Why? Explain.
The salvage value at the end of the 15-year life is $500. If the equipment brings in an income of $1,100 per month, what is the rate of return for this project?
An investor is offered a project that needs an initial investment of $240,000. Why should investor invest in this project?
If he is looking to invest his $100,000 where he can get an inflation adjusted rate. What minimum rate of interest should he shop for?
By how many "inflation adjusted" US dollars would this investor be better or worse off, if he invests in the country A project compared to the US project.
Calculate its depreciation schedule using: a-Straight-line method b-Double declining balance method c-Sum of the years digit method. d-MACRS method.
It operates for 10 years with no resale value. If their tax rate is 30%, what is the rate of return of this investment at MARR = 10%?
Calculate the depreciation and the book value of this equipment for the next 7 years. Use both straight-line and double declining balance depreciation methods.
What is the net present worth of this operation? Would he be better off using a DDB method of depreciation with the same assumptions?
The company has a combined tax rate of 40% and his cost of money is 8%. Calculate the after tax NPW of this endeavor for the company.
Calculate and draw the after tax cash flow of this purchase for the next five years. What the expected NPW of this project referred to at the time of purchase?