<u>Solution and Explanation:</u>
Land = 430000 + 48000 - 6800 + 2050 + 1400 = $474650
Building = 2100 + 64000 + 700 + 1200000 + 1610000 + 220000 = $3096800
In the land, cost of land has been included and along with amount to raze old building is included. salvage value is subtracted and legal fees is included and insurance on property cost is also included in the calculation of land.
In the calculation of building, land survey fees is included, drawing of factory plans is included, insurance premium fess is included, instalments amounts is included and interest cost is also included.
Answer:
4.86 years
Explanation:
Data provided in the question:
Cash flow each year from year 1 to year 4 = $30,000
Cash flow in year 5 through 9 = $35,000
Cash flow in year 10 = $40,000
Initial investment = $150,000
Firm's WACC = 10%
Now,
Accumulated cash flow for 4 years = $30,000 × 4 = $120,000
Accumulated Cash flow for 5 years = $120,000 + $35,000
= $155,000 > amount invested ($150,000)
Thus,
Remaining payback amount required in year 5 = $150,000 - $120,000
= $30,000
Payback period for $30,000 in year 5 = [$30,000 ÷ Annual cash flow]
= $30,000 ÷ $35,000
= 0.86 years
Hence,
Total payback period for this investment is
= 4 years + 0.86 years
= 4.86 years
PHASE 1: Accumulation
This period begins when you enter the workforce and begin setting aside funds for later in your life, and ends when you actually retire. If your employer offers 401(k), 403(b), or 457(b) plans, have you signed up and are you contributing the maximum allowed? Did you know that the "new normal" requires retirement savings rates for most Americans to exceed 10 percent? If self-employed, are you shortchanging yourself on Social Security in order to reap tax deductions?
PHASE 2: Pre-Retirement
This phase occurs during the final years of the accumulation phase and should begin when you reach 50 years old or are 15 years away from retiring, whichever happens first. Now is the time to get your plan in place, making sure your finances are lined up correctly for retirement day so nothing will be left to chance. If you work for a company with a benefits specialist, arrange an appointment to become informed about the various ways you can convert your employer retirement savings into a stream of income or an IRA. Consider using a tool known as "scenario planning." Start learning about Social Security and your options for beginning to receive retirement benefits. Familiarize yourself with the basics of Medicare.
PHASE 3: Early-Retirement
This phase lasts from the day you retire until you are 70 years old. (For those who do not plan to retire until well into their 70s, some tasks in this phase may occur later.) A key purpose of this phase is to create a clear communication channel with your family so information can be shared, questions asked and answered, and decisions made in a calm, supportive way. It's also the time to assess how well your finances are working now that you are using your retirement savings. Fine-tune your income and expense projections, taking into consideration how you will meet minimum distribution requirements from your tax-deferred accounts.
PHASE 4: Mid-Retirement
This phase begins at age 70 and lasts as long as you are able-bodied and high-functioning. Despite your good health, begin looking at what steps you would like your family to take should your condition decline significantly. In most cases your ability to make all your own decisions, care for yourself, engage with the world on your terms, and manage your affairs does not vanish in a split second. It takes courage to dive into a conversation about giving up and transferring control.
PHASE 5: Late-Retirement
This phase begins when your health has taken a turn for the worse and there is little likelihood of it being fully restored. You require significant help to function day to day. The hope is that by this point all the planning done in prior years makes this transition as manageable and life-affirming as possible.
Answer:
0.75 wheat
Explanation:
Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.
the opportunity cost of producing cars, is the quantity of wheat that would have to be forgone to produce one car
18 / 24 = 0.75 wheat
<span>"a 3/1 ARM" means starting at a fixed interest rate for the first 3 years and the interest rate will adjust every year after the first three years up to the part where it mentions a "3/9 cap". This on the other hand tells us that the increase will be 3% each time there is an interest rate increase and the max increase is 9%. Hence the answer is 9%</span>
