he Umbrella company is planning to purchase a substance known as Serum Serum A would cost $45,000 and would have a useful life of 10 years with ero salvage value. The expected annual cash flow of the serum is $9,500. anagement wants a 20% return on all investments. Use the provided prese alue tables for this question. If you use excel or a different table your nswer will be marked incorrect by the quiz autograder. equired: . Compute the internal rate of return (IRR) for Serum X. Your answer shoul be in numberical form (DO NOT include the percentage sign) and will be
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- RESOLVE THIS PROBLEM IN DIGITAL FORMAT (NOT HANDWRITTEN) Solve the following problem step by step, include the formulas you use and the development please - A person bought a car for which he paid $ 9500 on January 1 and sells it on June 6 of the following year for $ 16,700. What was the return in% that the investment gave?Iqra University is considering investing in an online book ordering and information service, which will be managed by 2 employees. The following estimates relate to the costs of starting the service and the subsequent revenues from it. The initial investment needed to start the service, including the installation of additional phone lines and computer equipment, will be $1,000,000. These investments are expected to have a life of 4 years with 0 salvage value.The investments will be depreciated straight line over the four-year life.The revenues in the first year are expected to be $1500,000, growing 20% in year 2, and 10% in the two years following.The salaries and other benefits for the employees are estimated to be $150,000 in year 1, and grow 10% a year for the following three years.The cost of the books is assumed to be “0.60” of the revenues in each of the four years.The non-cash working capital, which includes the inventory of books needed for the service and the accounts…Use the TVM Solver to answer the following questions. Write each known variable's value as it appears in the calculator and use a question mark for the missing variable. Then, in the space provided write the missing variable's value, as it appears in the calculator. Finally, write your final answer in context, with units, as a complete sentence. Round to three decimals or by context. 1. Thomas plans to invest $3,400 into a money market account with a 6% annual interest rate compounded weekly. How much will be in the account after 9 years? Variable Value N = 1% = PV = PMT= FV = PY = CY = What is the Missing Variable Unit? Write a Context Sentence:
- Assume that a company is considering purchasing a machine for $50,500 that will have a five-year useful life and no salvage value. The machine will lower operating costs by $17,000 per year. The company's required rate of return is 18%. The profitability index for this investment is closest to: Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using the tables provided. Multiple Choice C O 0.95. 1.01. 1.05. 1.11.Good day! I want you to answer only letter (2a).Note that PW, AW, and FW means (Present Worth)(Annual Worth) and (Future Worth)This is how you answer the problem. Identify first the given. Next identify what is being ask in the problem.Third show me the Formula first before you plug-in the given into it ,i want to study and learn from your solutionAssume that a company is considering purchasing a machine for $50,500 that will have a five-year useful life and no salvage value. The machine will lower operating costs by $17,000 per year. The company's required rate of return is 18%. The profitability index for this investment is closest to: Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables provided. Multiple Choice O 0.95. 1.01. 1.05. 1.11.
- You invest $ 500 today and receive $ 750 at the end of 5 years. a. DETERMINE the internal rate of return, using hand interpolation. Write answer to 2 decimal places. b. SUBMIT the procedures via the spreadsheet icon. Show all your computations. -Pls help with below homework. You graduate and decide you will start a consulting business out of your home. To perform the basic analysis needed for your field, you need to purchase testing equipment. The seller has 2 prices, one for incorporated businesses ($25,000) and one for individuals ($20,000). The salvage value of this equipment after 4 years is predicted to be $10, 000 in both cases. You and your partner are debating whether it is better to pay the higher purchase price and be able to depreciate the asset at a CCA rate of 30%, with the corporate tax rate of 40% OR to just keep them as a personal asset, with a sales tax rate of 10% at the time of sale. If we ignore the big picture arguments to be made here, what are the tax implications involved with each purchase/ sale option?Percentages need to be entered in decimal format, for instance 3% would be entered as .03. Golden State Bakers, Inc. (GSB) has an opportunity to invest in a new dough machine. GSB needs more productive capacity, so the new machine will not replace an existing machine. The new machine is priced at $260,000 and will require modifications costing $15,000. The machine has an expected useful life of 10 years, will be depreciated using the MACRS method over its 5-year class life, and has an expected salvage value of $12,500 at the end of Year 10. (See Table 10A.2 for MACRS recovery allowance percentages on page 184 in the textbook.) The machine will require a $22,500 investment in net working capital (NWC). The machine is expected to generate additional sales revenues of $125,000 per year, but its use also will increase annual cash operating expenses by $55,000. GSB's required rate of return is 10%, and its marginal tax rate is 40%. The machine's book value at the end of Year 10 be…
- Percentages need to be entered in decimal format, for instance 3% would be entered as .03. Golden State Bakers, Inc. (GSB) has an opportunity to invest in a new dough machine. GSB needs more productive capacity, so the new machine will not replace an existing machine. The new machine is priced at $260,000 and will require modifications costing $15,000. The machine has an expected useful life of 10 years, will be depreciated using the MACRS method over its 5-year class life, and has an expected salvage value of $12,500 at the end of Year 10. (See Table 10A.2 for MACRS recovery allowance percentages on page 184 in the textbook.) The machine will require a $22,500 investment in net working capital (NWC). The machine is expected to generate additional sales revenues of $125,000 per year, but its use also will increase annual cash operating expenses by $55,000. GSB's required rate of return is 10%, and its marginal tax rate is 40%. The machine's book value at the end of Year 10 be…Find the interest earned on $5,750 deposited into a savings account for 3 1/2 years at an annual interest rate of 4 1/2% a. What formula should be used? b. What are you trying to find and what variable does it represent in the formula? c. Solve the problem showing all of your work (must show all steps!!) d. Interpet your answer using a complete sentence You may use the box below to upoload a picture of your written explanation or type it out in the box. Use the "mountain" button to add pictures.Assuming that you would like to buy an equipment for your small business. Using the information below, calculate the Rate of Return and the Pay Back Period for the investment. After presenting your calculations, explain why you think this will (or will not) be a good investment. Here are the numbers: Cost of the investment is $100,000 Estimated depreciable life of investment is 5 years Annual depreciated charge is $15,000 Estimated average profit over depreciable life is $10,000.