16. What would income property be valued at if it had $50,000 annual gross income with 40% expense ratio and the agent uses 10% capitalization rate?

Q: Assume that you purchase a property for $2,000,000 and it generates $25,000 per month of rental…

A: Rate of return refer to the value of investment that is to be earned in a specified period of time…

Q: A proposed new investment has projected sales of $720,000. Variable costs are 40 percent of sales,…

A: The income statement is an essential part of the financial statements of the company. It is prepared…

Q: A project capitalized for ₱150,000 invested in depreciable assets will earn a uniform, annual income…

A: Initial Cost = 150,000 Annual Cash Flow = Annual Income - Operations and Maintenance Cost -…

Q: What is the future worth (in year 10), of the following: with an interest rate of 10%

A: Future worth is the worth of the money which an invested by the investor today is going to receive…

Q: 13. Consider the following possible returns over the next year on an asset Return probability –£40…

A: Expected Return refers to an estimated value that an investor may receive in future time considering…

Q: An investment of Public Transport need $ 200 billions, Revenue $ 100 billions / year, Expenditure…

A: Net Present Value The net present value calculator is a program that calculates the current value of…

Q: Suppose you sell a fixed asset for $85,000 when it's book value is $100,000. If your company's…

A: Calculation of After-tax Cash Flow:The after-tax cash flow is $88,150.Excel Spreadsheet:

Q: Equipment with a book value of $11,000 will be sold at the end of a project for a salvage value of…

A: The objective of the question is to calculate the tax effect resulting from the profit or loss from…

Q: A project capitalized for ₱150,000 invested in depreciable assets will earn a uniform, annual income…

A: Initial Cost = 150,000 Annual Cash Flow = Annual Income - Operations and Maintenance Cost -…

Q: 5. You have one asset in CCA Asset Class 12. You purchased this asset five years prior for $10.25…

A: CCA or Capital Cost Allowance- It is an annual deduction in the Canadian Tax Code. Under CCA,…

Q: Which net present value, payback period, and interal rate of return  is the best to choose.  (A).…

A: Net Present Value (NPV): Imagine NPV as a scorecard that takes into account the temporal value of…

Q: You are looking at an investment which has an initial cost of $400,000 and a salvage value of zero…

A: Average accounting return is calculated by dividing average net income by average investment.…

Q: What is the expected after-tax cash flow from selling a piece of equipment if XYZ purchases the…

A: Deprecation is that amount which is incurred due to wear & tear and usage of the assets It is…

Q: Suppose you sell a fixed asset for $99,000 when its book value is $75,000. If your company's…

A: The fixed assets are reflective of all such assets which are helpful for company in the deriving the…

Q: Suppose you sell a fixed asset for $10,000 when its book value is $2,000. If your company's marginal…

A: Sale Price = $10,000 = SP Book Value = BV = $2,000 Tax Rate = t = 21% After-Tax Cash Flow from Sale…

Q: ation tax shield? 5. Calculating Depreciation A piece of newly purchased industrial equipment costs…

A: Solution : Deprecation rate was fix under MACRS Table which was mentioned below & also…

Q: Suppose you sell a fixed asset for $10,000 when its book value is $2,000. If your company's marginal…

A: Book value is the carrying value of an asset or the value of an asset in the accounting books. Each…

Q: Assume that you purchase a property for $2,450,000 and it generates $195,000 per year of rental…

A: ANNUAL RATE OF RETURN   Annual rate of return is computed by deducting the cost of maintenance and…

Q: a. $40,000

A: Internal rate of return refers to the method of financial analysis for computing the profitability…

Q: 3. Assume a firm has earnings before depreciation and taxes of $500,000 and no depreciation. It is…

A: Earning before depreciation and taxes        $500,000 Depreciation…

Q: Suppose you sell a fixed asset for $109,000 when its book value is $129,000. If your company’s…

A: ANSWER After tax cash flow from sale of assets: After tax cash flow (ATCF) from sale of assets…

Q: The first question: Assuming that the asset turnover rate for an industrial company was 2 times…

A: Ratio analysis is a financial tool used to evaluate a company's financial performance and position…

Q: You have a depreciation expense of $459,000 and a tax rate of25%. What is your depreciation tax​…

A: Depreciation tax shield is the amount of shield that a depreciation provides against the income tax…

Q: ou need to estimate the value of Laputa Aviation. You have the following forecasts (in millions of…

A: The weighted average cost of capital measures the typical cost a business pays to finance its…

Q: suppose interest rate is 10 percent and the income stream is (y1, y2) = $1200; and $ 990, then the…

A: Interest Rate = 10% Income in year 1 = 1200 Income in year 2 = 990

Q: Suppose you sell a fixed asset for $109,000 when its book value is $129,000. If your company’s…

A: After-tax cash flow of this sale is the net amount received from the sale of fixed asset. Net amount…

Q: An income-producing property is priced at $600,000 and is expected to generate the following…

A: The NPV will be the amount that is computed after finding the total of the discounted value of cash…

Q: The value of a good rises by 13% in a year. If it was worth 6.5 million at the beginning of the…

A:

Q: Net cost of investment is 100,000. Profitability index is 1.3 while cost of capital is 10%. Useful…

A: The profitability index is a measure that is used to evaluate the profitability of investment. It…

Q: The table below shows a comparison between three mutually exclusive alternatives. If the capital…

A: The capital budgeting is a technique that helps to analyze the profitability of the project that…

Q: The salvage value of an asset is RM75,000. The annual cash flow is RM 10,500, and the networking…

A: Terminal cash flow of the asset is the cash flow that includes the net amount earned by the firm…

Q: ATIRR. You can buy a building for $1,000 and sell it after 10 years for $1,100. (NOI = 70; Annual…

A: Here, To Find: After-tax rate of return =?

Q: Nhat is the rate of return (the interest rate) on an investment today of $30,626.24 if the company…

A: TIME VALUE OF MONEY    Time value Of Money(TVM) is the idea that cash you have now is worth more…

Q: Determine the capitalized cost of an equipment costing P2M with an annual maintenance of P200,000 if…

A: Capitalized cost: Capitalized cost is the present value of an annual expense that is constant and is…

Q: You plan on buying a bottling machine for $2 llion, which can be salvaged for $400,000 in 8 ars.…

A: CCA is a capital cost deduction like depreciation and takes advantage of tax deductions and hence…

Q: 3) What is the capitalized worth, when i 12% per year, of $2.000 per year, starting in year one and…

A: Annual cost (A) = $2000 Repeating cost (R) = $11000 in year 5, every 4 years i = 12%

Q: How are you coming up with $9300 *0.05%? wouldn't it be $9900 x .05%?

A: Interest or late payment charges are levied on the amount which is remaining to be paid/discharges…

Q: A project has sales of $462,000, costs of $274,000, depreciation of $28,000, interest expense of…

A: Given: Sales =$462000Cost =$274000Depreciation =$28000Interest expense =$3400Tax rate =35%

Q: A project costs 20,00,000 and yields annually a profit of Rs. 3,00,000 after depreciation @ 12½% but…

A: Payback period is the recovery time of the initial cash outflow from the cash inflows generated from…

Q: Suppose that the marginal tax rate is 15%. If a farmer decide to purchase a combine it will increase…

A: Net present value refers to the method of capital budgeting used for evaluating the worth of the…

Q: Assume that you calculated the ATER after year 3 as $275,000, the after-tax cash flow in year 4 was…

A: The incremental IRR refers to the measure of the profitability of an increase in investment in an…

Q: You purchase a two acre office park for $5,000,000. Calculate the depreciation that you can deduct…

A: Depreciation is the process of recovering the cost of a property over time. Each year, you reduce a…