COnsider a project to supply 100 million postage stamps per year to canada post for the next 5 years. You have an idle parcel of land available that cost $1,000,000 five years ago; if you sold the land today, it would net you $1,500,000 after tax. If you sold the land five years from now, the land can be sold again for $1,500,000 after tax. You will need to install $3,800,000 in new manufacturing plant and equip to actually produce stamps; this plant and equipment will be depreciated straight-line to zero over the project's five year life. The equipment can be sold for $680,000 at the end of the project. You will need $500,000 in initial net working capital for the project and an additional $50,000 every year thereafter. Your production costs are $0.5 cents per stamp, and you have fixed costs of $900,00 per year. If he tax rate is 34 percent and your required return on the project is 12 percent, what bid price should you submit on the contract?
You are given a choice of taking the simple interest on 100,000 invested for 2 years
You are given a choice of taking the simple interest on 100,000 invested for 2 years at a rate of 3% Or the interest on 100,000 invested for 2 years at an interest rate of 3% compounded quarterly.Which investment earns the greater amount ofinterest? Give the difference between the amounts of interest earned by the two investments.The investment with -----------interest earns $________more interest ((Round to the nearest Cent as needed) Karen Gaines invested $10,000 in a money market account with an interest rate of 1.75% compounded semiannually. Six yearslater, Karen withdrew the full amount to put toward the down payment on a new house. How much did Karen withdraw from the account? Karen withdrew $ . (Round to the nearest cent as needed.) Click here to download the Solution
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