a company invests $100,000 in a property. the company has a contract to sell it for $120,000 in one year. the bank has a guaranteed interest rate of 10%. what is the net present value of the company's investment in the property?

Answers

Answer 1

The net present value (NPV) of the company's investment in the property is $8,327.58 (rounded off to the nearest cent).

Given:

Investment = $100,000

Future Value (FV) = $120,000

Time (n) = 1 year

Interest Rate (r) = 10%

To calculate NPV, the formula is as follows:

NPV = (FV / (1 + r)^n) - Investment

We need to calculate the present value (PV) of the future cash inflows and outflows. We then compare these values to determine the net present value (NPV).

PV of the investment = -$100,000 (outflow)We first calculate the future value of the investment:

FV of the investment = $100,000 x (1 + 10%)^1

= $110,000

PV of the future value of the investment = $110,000 / (1 + 10%)^1= $100,000 (outflow)

The present value of the future inflow from the sale of the property is:

FV of the future cash inflow = $120,000

PV of the future cash inflow = $120,000 / (1 + 10%)^1

= $109,090.91 (inflow)

NPV = (FV / (1 + r)^n) - Investment

= $109,090.91 - $100,000

= $9,090.91 (rounded off to the nearest cent)

Therefore, the net present value (NPV) of the company's investment in the property is $8,327.58 (rounded off to the nearest cent).

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Related Questions

The Berlin airlift operation, nicknamed "Operation Vittles," provided food, fuel, and basic supplies for Allied forces stationed in Berlin during World War II.
True
False​

Answers

Answer:

False.

Explanation:

After the end of World War II, Germany was separated into four sectors, according to the nations controlling it. The nation was divided into four parts- Soviet, American, British, and French-controlled zones. This division was further taken in the case of Berlin, the capital city, dividing it among the four nations.

And the Soviets, in an attempt to drive the other three nations away from the capital city, blocked all forms of road access. The plan was to stop any flow of resources and necessities and it will result in France, Britain, and America abandoning their sections of Berlin.

But, taking advantage of the free airspace, the three nations began using their aircraft to drop basic supplies to the people living in their parts of Berlin. This operation was codenamed "Operation Vittles".

Thus, the correct answer is false. For, the airlift operation was to provide the basic necessities to the people, not the Allied forces station in Berlin.

Select a single stock issue, then perform each of the ratio valuations, covered in the lesson. Compare the information and make a recommendation on the value of the stock, and whether it is a good investment. Your submission must list the name of the stock, the data. The information was obtained, the source from which the information was drawn, and a list of each of the ratio models, showing the results. Also, prepare a narrative of at least two paragraphs that analyzes your findings and indicates your recommendations.

Select a single stock issue, then perform each of the ratio valuations, covered in the lesson. Compare

Answers

We should note that stock valuation helps to predict the future price or potential market prices for the investors to time their sales or purchase of investments. Its values the intrinsic value of the stock that shows the profitability of the business and its future market value.

What is the stock valuation of Apple Inc?

In this context, let's assume we're analyzing Apple Inc. (AAPL), a technology company that designs, manufactures, and markets mobile communication and media devices, personal computers, and portable digital music players.

One key ratio valuations that investors might use to assess the value of AAPL is Price-to-earnings ratio (P/E ratio). This ratio compares the current stock price to the company's earnings per share (EPS). A high P/E ratio suggests that investors are willing to pay a premium for the stock based on its earnings potential.

To calculate the P/E ratio for AAPL, we would divide the current stock price by the company's EPS. As of 2022, AAPL had a P/E ratio of around 28, which is slightly higher than the industry average of around 24.

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Suppose that a developing country currently has a per capita GDP of $1,300 and has a goal to double its average standard of living in 8 years. What will be the approximate annual economic growth rate required for this country to attain its goal? (Hint Use the Rule of 70) Instructions: Round your answer to 2 decimal places.

Answers

The Rule of 70 is a useful tool to estimate the number of years it takes for a variable to double, given a growth rate. To use this rule, we divide 70 by the growth rate. In this case, the developing country wants to double its per capita GDP in 8 years. Therefore, we can use the Rule of 70 to calculate the required annual economic growth rate as follows:
70 / 8 = 8.75 . So, the country needs an average annual economic growth rate of approximately 8.75% to double its per capita GDP in 8 years.


The Rule of 70 is derived from the formula for exponential growth, which is expressed as:
FV = PV x (1 + r) ^ t
Where:
FV = Future value
PV = Present value
r = Annual growth rate
t = Time period
If we want to know the number of years it takes for the future value to double the present value (i.e., FV = 2 x PV), we can substitute these values into the formula and solve for t as follows:
2 x PV = PV x (1 + r) ^ t
2 = (1 + r) ^ t
ln(2) = ln(1 + r) ^ t
t = ln(2) / ln(1 + r)
Using the logarithmic rule that ln(a ^ b) = b x ln(a), we can simplify this equation to:
t = 0.693 / ln(1 + r)
We can then use the Rule of 70, which is a rounded approximation of this equation when t = 70 / r. Solving for r, we get:
r = 70 / t
In this case, t = 8 years, so the required growth rate is:
r = 70 / 8 = 8.75%
Therefore, the developing country needs an average annual economic growth rate of approximately 8.75% to double its per capita GDP in 8 years.

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Give three reasons why building apps might not be the sole source of income for an individual.

no weird links YOU WILL BE REPORTED

Answers

Answer:

because of there poor user experience, not choosing a platform wisely and a poor executed mobile app launch :)

Rick has a great idea about a new product to sell. He needs
money to get started building his brand. What type of loan does
he need?
A. Mortgage
B. Business
C. Home equity
D. Auto

Answers

He needs a business loan so it would be B

the rule of 72 implies that a country will double its income in about 4 years if its growth rate is:

Answers

The rule of 72 implies that a country will double its income in about 4 years if its growth rate is 18%. This is because the rule of 72 is a mathematical formula that helps estimate the time it takes for an investment to double in value.

The Rule of 72 implies that a country will double its income in about 4 years if its growth rate is 18%. This rule is a useful shortcut for estimating how long it takes for an investment or economy to double in value based on a fixed growth rate. To calculate this, simply divide 72 by the number of years (4 years in this case), which results in an 18% annual growth rate required for the country to double its income within that timeframe. To use this formula, you divide the number 72 by the growth rate. So, if a country's growth rate is 18%, you would divide 72 by 18, which equals 4. Therefore, if the country maintains a growth rate of 18%, its income would double every 4 years. This is a useful tool for investors and policymakers to estimate the potential growth and impact of economic policies on a country's income.

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how is a temporary increase in government purchases likely to affect the composition of output in the long-run?

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A temporary increase in government purchases can have both short-term and long-term effects on the composition of output in the economy.

In the short run, a temporary increase in government purchases can lead to an increase in aggregate demand and output, as businesses ramp up production to meet the higher demand. However, this increase in output may be short-lived if the increase in government spending is not sustained.

In the long run, the composition of output is likely to be affected by the way the temporary increase in government purchases is financed.

If the government finances the increase in spending by borrowing, then the increase in output may be temporary and may lead to higher interest rates and crowding out of private investment.

This could lead to a shift in the composition of output towards the public sector and away from the private sector.

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Select all that apply.
Select all reasons data mining is important to businesses.
It cuts costs.
It identifies long-term goals.
It solves problems.
It increases profits.

Answers

It cuts cost

I sole’s problems increase profits

Answer:

a,c,d

Explanation:

what are non economic resources?​

Answers

Answer:

Non-Economic resources are all those resources that are generally limitless in supply and are not rationed by prices ie (they have no price tags) they are not characteristically traded in markets.

Answer:

Non-Economic resources are all those resources that are generally limitless in supply and are not rationed by prices ie (they have no price tags) they are not characteristically traded in markets.

Explanation:

The formula for using monthly advertising expenditure to predict monthly sales revenue for a certain company is Y' = 1.81X + 5843 (all values in dollars). This indicates that a. the company is wasting money on advertising b. 5843 is spent on advertising each month c. each dollar spent on advertising increases revenue by $1.81 d. spending 5843 dollar on advertising increases sales by a factor of 2

Answers

The correct answer is c. Each dollar spent on advertising increases revenue by $1.81.

In the given formula, Y' represents the predicted monthly sales revenue, X represents the monthly advertising expenditure, 1.81 is the coefficient of X, and 5843 is a constant term.

The coefficient of X (1.81) indicates the relationship between the advertising expenditure and the predicted sales revenue. In this case, for each dollar spent on advertising (X), the predicted sales revenue (Y') increases by $1.81. Therefore, option c is the correct answer.

Option a is incorrect because the formula does not suggest that the company is wasting money on advertising. Option b is incorrect because 5843 is not the amount spent on advertising each month but rather a constant term in the formula. Option d is incorrect because the formula does not provide information about the specific effect of spending $5843 on advertising.

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In preparing a company's statement of cash flows using the indirect method, the following information is available:Net income $ 52,000Accounts payable decreased by 18,000Accounts receivable increased by 25,000Inventories increased by 5,000Depreciation expense 30,000Net cash provided by operating activities was:

Answers

Answer:

Statement of cash flows using the indirect method

Net income                                                              $52,000

Adjustments to net income:

Depreciation expense $30,000Increase in accounts receivable ($25,000)Increase in inventories ($5,000)Decrease in accounts payable ($18,000)    ($18,000)

net cash flow provided by operating activities    $34,000

what is a compounding period?

Answers

Answer:

Compounding periods are the time intervals between when interest is added to the account.

Explanation:

Interest can be compounded annually, semi-annually, quarterly, monthly, daily, continuously, or on any other basis.

G what was the total amount of dividends the company paid to stockholders in the current period?

Answers

$28,000  was the number of dividends the company paid in the current period. Thus, option C is correct.

What is a company?

A company is a legal body created by a group of people. This will conduct and manage a multinational corporation.  Whether the company is commercial or economic depends on its function.

Net Income is termed at $84000.

The beginning of the retained earnings is presented at $54,000

The ending of the retained earnings is presented at  $ 110,000

change in the retained earning =  110000 - $54000

=$56000

Dividends the company = $84000 - $56000

=  $28000

Therefore, option C is correct.

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The question is incomplete, Complete question probably will be:

Given the information below about Thomas Corporation, what was the amount of dividends the company paid in the current period? S 54,000 Beginning retained earnings Ending retained earnings $ 110,000 S Decrease in cash 10,000 $ Net income 84,000 Change in stockholders' equity 15,000 A) $110,000 B) $13,000 C) $28,000 D) $18,000

11:44

Solution

Net Income $84000.

cCange in retained Earnings = 110000 - $54000

$56000

$84000 - $56000 -

→ $28000

Outline any other THREE qualities of a successful entrepreneur​

Answers

Answer:

Robust Work Ethic.

Deep Passion.

Creativity. ...

Motivated Self-Starters. ...

Easygoing Attitude. ...

Eager to Learn.

you can choose any three you want :)

is this the longest question?‎‎

Answers

Answer:

who is the smartest man in the world and How old is he

What statements best describe a store charge card?


A. Store cards do not have the name of the store on them.

B. Store cards have a "Visa" or "MasterCard" logo on them and can used as a debit card.

C. Usually, the store card can only be used at the store or at other businesses that store may own.

D. Store cards can only be used for sale items.

Answers

The statement that best describe a store charge card is that usually, the store card can only be used at the store or at other businesses that store may own. Option C is correct.

Store charge cards are typically issued by a specific store or chain of stores and can usually only be used for purchases made at that store or its affiliated businesses. They typically do not have a Visa or Mastercard logo and cannot be used as a debit card. While some store cards may offer special discounts or rewards for sale items, they are not typically restricted to sale items only.

Store charge cards are credit cards that are issued by a specific store or retail chain. Unlike traditional credit cards, store charge cards can only be used for purchases at the store or its affiliated businesses. They are not typically affiliated with Visa or Mastercard, so they cannot be used as a debit card or to make purchases at other retailers.

Store charge cards often offer rewards programs or special discounts to cardholders, such as cash back on purchases or exclusive access to sales and promotions. However, these rewards are typically limited to the store or chain of stores that issues the card. In addition, store charge cards often have higher interest rates and fees than traditional credit cards, so it is important to carefully review the terms and conditions before applying for a store charge card. Option C is correct.

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Quiz what advantage is the company experiencing by allowing angela to telecommute?

Answers

The advantages of allowing Angela to telecommute include increased productivity, cost savings, improved work-life balance, access to a wider talent pool, and reduced employee turnover.

The company is experiencing several advantages by allowing Angela to telecommute.

1. Increased productivity: Telecommuting allows Angela to work in a comfortable and familiar environment, which can boost her productivity. Without the distractions and interruptions of a traditional office setting, Angela can focus on her tasks and complete them efficiently.

2. Cost savings: By telecommuting, Angela does not have to commute to the office, which saves on transportation costs. Additionally, the company can reduce expenses related to office space, utilities, and equipment since Angela is using her own resources at home.

3. Improved work-life balance: Telecommuting provides Angela with more flexibility in managing her work and personal life. She can better juggle her responsibilities and have more time for family, hobbies, or personal interests. This leads to increased job satisfaction and overall well-being.

4. Access to a wider talent pool: Allowing telecommuting opens up the possibility of hiring employees from different locations. The company can tap into a larger pool of skilled individuals who may not be available locally, increasing the chances of finding highly qualified candidates.

5. Reduced employee turnover: Offering telecommuting options can boost employee retention. Angela may be more likely to stay with the company if she is able to work remotely, as it provides her with a desirable work arrangement that aligns with her needs and preferences.

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What do dymanic link libary files do

Answers

A dynamic link library is a collection of small programs that larger programs can load when needed to complete specific tasks. The small program, called a DLL file, contains instructions that help the larger program handle what may not be a core function of the program.

the balanced scorecard relies on four processes to bind short-term activities to long-term objectives. what are they?

Answers

The balanced scorecard relies on four processes to bind short-term activities to long-term objectives - Translating the vision, Communicating and linking, Business planning, Feedback and learning.

What is a balanced scorecard?

A strategic management performance indicator known as the balanced scorecard (BSC) is used to identify and enhance various internal business activities and the results they have on the outside world. Balanced scorecards are a widespread tool used by businesses in the United States, the United Kingdom, Japan, and Europe to measure and provide feedback to organisations. In order to provide quantitative results, data collecting is essential because managers and executives must acquire and analyse the data. The decision-making of company personnel for the future of their organisations can be improved with the help of this knowledge.

The balanced scorecard was initially developed by business leader and theorist Dr. David Norton and accounting professor Dr. Robert Kaplan. It was initially published in 1992 in the Harvard Business Review article "The Balanced Scorecard—Measures That Drive Performance."

The 4 activities are:

1.  Translating the vision

2. Communicating and linking

3. Business planning

4. Feedback and learning

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Helios inc. has a low market share for its achilles range of running shoes in the south atlantic region. which index reflects this information?

Answers

Low brand development index (BDI) index reflects this information for Helios inc. has a low market share for its Achilles range of running shoes in the south atlantic region.

The brand development index measures your brand's market performance by comparing its value to the global average across all markets. This method determines a brand's sales potential in a specific market.

The causes of a poor brand development index and category development index are listed below. if the market or brand share is low yet there is a considerable possibility for growth. It's also possible that the brand is struggling on the market despite the fact that its product category shows a lot of promise.

Along with the brand development index and category development index, these two indicators are included in the sales analytics methodologies.

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when designing an activity-based costing system, related activities are frequently combined to reduce the amount of detail and record-keeping cost.

Answers

Activity based costing involves combining related costs for easier accounting so this statement is True.

Activity based costing:

Involves assigning costs to related activities only Is useful in seeing the total costs of certain activitiesAllows companies to set better prices

Activity based costing combines activities that are similar such as those that require labor hours and then assigns costs to them based on the amount of activity that those sections saw during the production period.

We can therefore conclude that activity-based costing combines related activities and one reason for this is to reduce the cost of record keeping.

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Which of the following choices incur speculative risk?

a.stocks

b.fire insurance on a house

c.options

d.life insurance


e.high interest savings account

Answers

Answer: correct option is A.

Explanation: A speculative risk can be defined as risk that is taken willingly either it results in profit or loss and the stocks involve in probability of gain and loss making it a speculative risk.

Stocks incur speculative risk. Therefore option A is correct.

What are Stocks?

A stock usually referred to as equity, is a type of investment that denotes ownership in a portion of the issuing company. Shares, also known as units of stock, entitle their owners to a share of the company's assets and income in proportion to the number of shares they possess.

Common stock and preferred stock are the two primary categories of stocks.

Owners of common stock are entitled to dividends and the right to vote at shareholder meetings.

Common stockholders often do not have voting rights, while preferred stockholders typically get dividend payments ahead of time and are given preference over common investors in the event of a firm bankruptcy and asset liquidation.

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which part of our body is affected by plogue pose?​

Answers

Answer:

spine and shoulders are affected

The spine and the shoulders of our body part are mostly affectd by the plogue pose. It stretches our body muscles.

Plow Pose

It is a stretching exercise which keeps your body fit and flexible.

Doing stretching exercise regularly benefits the body mucles and tendons.

The plow pose is a stretching exercise where one positions his/her body upside down and keeps their feet bend over the head.

This pose affects our spine and also our shoulders.

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which part of our body is affected by plogue pose?

which republicans voted for debt ceiling

Answers

Answer:

   John Barrasso of Wyoming, Roy Blunt of Missouri, Susan Collins of Maine, John Cornyn of Texas, Mitch McConnell of Kentucky, Shelley Moore Capito of West Virginia, Lisa Murkowski of Alaska, Rob Portman of Ohio, Mike Rounds of South Dakota, Richard Shelby of Alabama, and John Thune of South Dakota.

A corporation may have issued more shares of stock than it has outstanding. This statement is.

Answers

A corporation may have issued more shares of stock than it has outstanding. This statement is True.

Because Companies may sell shares to stockholders and then later buy those shares back. Treasury stock is the name given to the repurchased shares. Shares issued less Treasury stock equal the number of shares that are currently outstanding. The number of shares issued will therefore be higher than the number of shares outstanding if a corporation has treasury stock.

Describe Treasury Stock.Treasury stock, commonly referred to as treasury shares or reacquired stock, describes previously outstanding stock that the issuing corporation purchases back from stockholders. The overall number of outstanding shares on the open market declines as a result.These shares were issued but are no longer in circulation, thus they are not counted in the calculation of dividends or diluted profits per share (EPS).What is a stock share?The smallest entire portion of a corporation that a single investor can own is a share. If you possess 10 shares, for example, you own 10 shares. Stock, on the other hand, is a measure of equity (e.g. you own 10 percent of the company). Consider shares as a tiny chunk of a business.

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Suppose there is a decrease in the price of corn. If corn is an input into the production of ethanol, we would expect the supply curve for ethanol to:.

Answers

Answer:

shift rightward is the answer.

Explanation:

a company is considering producing an item that can be sold for $37.50 per unit. if the fixed costs for setting up production are $225,000 and the variable cost per unit for the item is $35.00 then the break-even volume for this item is: group of answer choices 6,000 units 6,429 units 72,500 units 90,000 units

Answers

Breakeven deals volume is the sum of your item that you simply will ought to deliver and offer to cover add up to costs of production.

From the given information,

Fixed taken a toll = $225,000 Variable fetched per unit = $35 Sales cost per unit = $37.50 Breakeven volume = Settled taken a toll / (Cost - Variable Taken a toll) Breakeven volume = 225,000 / (37.50 - 35) Breakeven volume = 225,000 / 2.5 Breakeven volume = 90,000

What is breakeven formula?

Break-Even Point (units) = Settled Costs ÷ (Income Per Unit – Variable Taken a toll Per Unit) To calculate break-even point based on deals in GBP: Separate your settled costs by the commitment edge. The commitment edge is calculated by subtracting variable costs from the cost of a item.

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In a two -tep word problem you have to do two thing whith the informatoin. And ually there are word that help you know what to do like multiply,divide,add,or ubtract. O knowing how to do thee thing help u undertand the problem

Answers

Correct, being able to identify keywords and phrases in a word problem can help you understand what mathematical operation needs to be performed in order to solve the problem.

For example, if a word problem contains words like "multiply" or "times", you know that you need to use multiplication to solve the problem.

Similarly, if a problem contains words like "divide" or "quotient", you know that you need to use division to solve the problem. Additionally, if a problem contains words like "add" or "sum", you know that you need to use addition to solve the problem. And if a problem contains words like "subtract" or "difference", you know that you need to use subtraction to solve the problem.

Knowing these keywords and phrases can help you quickly understand the problem and determine the appropriate mathematical operation to use.

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because of various texas and us laws, interest groups with lower amount of financial resources possess the same amount of political influence as larger, wealthier interests.

Answers

False, because of various texas and US laws, interest groups with lower amounts of financial resources possess the same amount of political influence as larger, wealthier interests.

The law of the usa contains several stages[1] of codified and uncodified styles of law, of which the most important is that the nation's charter, which prescribes the foundation of the federal government of the usa, additionally as diverse civil liberties.

The charter units out the limits of federal law, which consists of Acts of Congress, treaties ratified by way of the Senate, guidelines publicized with the aid of the govt branch, and case law originating from the federal judiciary. the usa Code is the authentic compilation and codification of trendy and permanent federal statutory regulation. Federal regulation and treaties, goodbye as they are according with the constitution, preempt conflicting nation and territorial laws in the 50 U.S. states and inside the territories.

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WILL GIVE BRAINLIEST PLZ!!!
If producers expect the price of a good to decrease in the future, what will happen to the current equilibrium price and quantity of that good?
a. The equilibrium price and quantity will both decrease.
b. The equilibrium price and quantity will both increase.
c. The equilibrium price will increase and equilibrium quantity will decrease.
d. The equilibrium price will decrease and equilibrium quantity will increase.

Answers

Explanation:

C = the equilibrium price will increase and equilibrium quantity will decrease

Answer:

C

Explanation:

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Determine the contribution margin by glass type and the total company income from operations for the budgeted units of production. Large Medium Small Total D 2,400 Units produced 2,400 2,400 x X Revenues 542,400 X X X Variable costs 427,200 X 115,200 X X X Contribution margin Fixed costs Income from.contations $ 51 6 X X X X X Total process hours per unit 18 4 12 Budgeted units of production 2,400 2,400 2,400 a. Determine the contribution margin by glass type and the total company income from operations for the budgeted units of production. Large Medium Small Total Units produced 2,400 2,400 2,400 Revenues 542,400 X X Variable costs 427,200 X X X Contribution margin 115,200 X X X Fixed costs X x Income from operations b. Prepare an analysis showing which product is the most profitable per bottleneck hour. Round the "Unit contribution margin per production bottleneck hour" amounts to the nearest cent. 4 Large Medium Small Contribution margin Autoclave hours per unit Unit contribution margin per production bottleneck hour x X X x X X x X X X X X Try to identify the following based on their description by a field geologist: Like pages from a book, this sample pulls apart in thin sheets of a dark see through black layers. Due to its nature of see through dark sheets the geologist has determine this to not be a metallic material opting more for virtuous appearance I need help so please help 2. What could women of Athens not do?O take part in politicsO train their slavesO manage the weavingO keep track of family finances why would it be beneficial to compare articles and websites for a project?- give a claim (your answer)- 3 evidences (why did you choose that answer)- 3 reasons (why did you choose that evidence) What is the resulting cross section if the cheesecake was sliced parallel to its points? 4d-(5b+3) for d=-8 and for b=-3 Someone can help me???? Task 7. The first physicist gets a second physicist to help. They both push on the crate, parallel to the surface of the incline, and it moves at constant speed up the incline. How does the force exerted by the two physicists on the crate compare with the force of friction on the crate What is the term fora group of diversenations ruled by acommongovernment?A. empireB. republicC. parliamentD. city-state