1. A young engineer is considering establishing his own small company. An investment of Php 100,000 will be required which must be recovered in 15 years . It is estimated that sales will be Php 150,000 per year and that operating expenses will be as follows: Material Php 40,000 per year Labor Php 70,000 per year Overhead Php 10,000 + 10% of sales/year Selling expenses Php 5,000/year The young engineer will give up his regular job paying Php 150,000 per year and devote full time to the operation of the business. This will result in decreasing labor by Php 10,000 per year , material cost by Php 7000 per year, and overhead cost by Php 8000 per year. If the young engineer expects to earn at least 20% on his capital, should he invest ?

1. A young engineer is considering establishing his own small company. An investment of Php 100,000 will be required which must be recovered in 15 years . It is estimated that sales will be Php 150,000 per year and that operating expenses will be as follows: Material Php 40,000 per year Labor Php 70,000 per year Overhead Php 10,000 + 10% of sales/year Selling expenses Php 5,000/year The young engineer will give up his regular job paying Php 150,000 per year and devote full time to the operation of the business. This will result in decreasing labor by Php 10,000 per year , material cost by Php 7000 per year, and overhead cost by Php 8000 per year. If the young engineer expects to earn at least 20% on his capital, should he invest ?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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The store owner hires 2 sellers with a total payment fund of 150 thousand rubles per year. Pays a monthly rent of 60 thousand rubles. He invested his own capital of 300 thousand rubles in the business, donating 30 thousand rubles per annum, which he would have had with another placement of capital. He estimates his entrepreneurial talent at 100 thousand rubles a year. A large trading company offers him a place with a salary of 200 thousand rubles a year. Calculate the amount of accounting and economic costs and draw conclusions.
Assume that you are thinking about starting your own small business. You have made the following estimates regarding this opportunity: • You can rent a location for your business at a cost of $36,000 per year. The equipment costs incurred to start the business would total $250,000. The equipment would have a 5-year useful life and a salvage value of $25,000 Your company's estimated sales per year would equal $350,000 and its variable cost of goods sold would be 30% of sales. • Other operating costs would include $58,000 per year in salaries, $4,000 per year for insurance, $25,000 per year for utilities, and a 3% sales commission The simple rate of return for this investment opportunity is closest to: Multiple Choice 22.0% 19.0% 26.6% 15.7%
As the new engineer in the company, you are tasked to send out a proposal for an expansion of the current manufacturing plant. As per research, you came up with a summary of the capital needed and it is amounting to Php 18,500,000.00. Annual depreciation is noted as well as 10% of your capital invested. You are asked to determine the rate of return if your projected annual revenue is at Php 5.500,000.00. Express the answer in percentage, up to two decimal places/digits. Answer Blank 1%
As the new engineer in the company, you are tasked to send out a proposal for an expansion of the current manufacturing plant. As per research, you came up with a summary of the capital needed and it is amounting to Php 18,500,000.00. Annual depreciation is noted as well as 10% of your capital invested. You are asked to determine the rate of return if your projected annual profit is at Php 5,500,000.00. Express the answer in percentage, up to two decimal places/digits.
Assume that a money manager is considering the buy of a $35,000 machine and that he appraises that the machine will give a return (net of working expenses) of $10,000 each year for a very long time. Accept that the going pace of interest is a) 8 percent, b) 2% would it be advisable for him to get it?
Supposed you are offered to work on a big company, with P20,000 monthly net income. But you are also considering another offer by a smaller firm with P8,000 semi-monthly net income but you can be promoted faster due to its smaller scaled organization will be receiving a P500.00 salary increased after 2.5 years. At 10% annual interest worth of money, on which offer will you be considering advantageous salary-wise after5 years? Explain your answer
Present value. You are currently in the job market. Your dream is to earn a six-figure salary ($150,000). You hope to accomplish this goal within the next 28 years. In your field, salaries grow at 3% per year. What starting salary do you need to reach this goal? What starting salary do you need to reach this goal? (Round to the nearest cent.)
An engineer purchases an equipment that will be worth Php 20000 in seven years. If the price increase at 9% each year, how much should the engineer invest today to purchase the equipment.
Acme Bricks, a masonry products company, wants to have Php 600 000 on hand before it invests in new conveyors, trucks, and other equipment. If the company sets aside Php 80 000 per year in an account that increases in value at a rate of 15 % per year, how many years will it be before Acme can purchase the equipment? A. 3.2 years B. 4.6 years C. 6.3 years D. 5.4 years
Php 100, 000 is known to be invested in two new adhesives known as type M and type N by a corporation that makes very strong adhesives. The category M investment is Php20, 000 and is projected to yield a return rate of 40 percent per annum. In order for the overall return to be at least 25%, your boss asked you to decide what rate of return on the remaining Php80,000 will be needed. You replied that at least the return will have to be: *
PLEASE ANSWER IT IMMEDIATELY. I NEED THE ANSWER NOW A businessman invested P50,000 in a company that engages in the manufacture of hollow blocks. In return, he receives 3,000 per year for 5 years. Compute the rate of return on investment.

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