Marcus has created a budget for his upcoming trip to the theme park. Admission is 40% of the budget. He plans to spend 32% of his money on food, 23% on souvenirs, and save 5% for emergencies. He knows the admission will be $6 more than he will spend on food and souvenirs. How much money will Marcus need to take to the park
Q: At a military base in Texas, Corporal Stan Moneymaker has been offered a wonderful savings plan.…
A: Given information , Stan will pay 45 payments of $200 from his own pocket after that the payments…
Q: A. Calculate the net present value of each of the projects. Which project should Ben invest in? Show…
A: Answer: A Whichever project has the higher NPV is the more profitable and should be a priority and…
Q: Samantha and Rashida are planning a trip to Padre Island, Texas, during spring break. Mem-bers of…
A: The additional cost of generating one more amount of production is referred to as the incremental…
Q: You've just graduated from college, and you are contemplating your lifetime budget. You think your…
A: Inflation:The gradual rise in the average price of goods and services over time in an economy is…
Q: A father is now planning a savings program to put his daughter through college. She is 13, plans to…
A:
Q: Michelle is attending college and has a part-time job. Once she finishes college, Michelle would…
A: The value of any current asset, depending on the assumed rate of growth, at a future date is called…
Q: A father is now planning a savings program to put his daughter through college. She is 13, plans to…
A: Current annual cost= $18000 College savings= $7000 Interest= 9%
Q: You have chosen biology as your college major because you would like to be a medical major. However,…
A: Calculate the expected salary as follows: expected starting salary = [Salary * Probability] expected…
Q: c) In order to take his family to a show, Sergio will have to purchase 2 adult tickets and 3 child…
A: Total cost means the amount incurred to do anything. For example , to produce a product , to go for…
Q: uppose someone wants to accumulate $55,000 for a college fund over the next 15 years. Determine…
A: We have; Amount to accumulate as $55000 Time period as 15 years Amount deposited per month is $60…
Q: Thomas has $1,000 in his bank account today to spend on a TV in one year. Thomas needs exactly…
A: Maturity Value is that value which will be received by the investor at the end of investment period.…
Q: Jose is thinking about purchasing a soft drink machine and placing it in a business office. He knows…
A: Calculate the profit per year as follows: Profit per year = Number of working days in a…
Q: hed is considering his plans for the coming weekend. He is currently working as a marketing…
A: Incremental Cost defines that extra cost or cost which increases the total cost of the entity due to…
Q: Desmond currently is a brewmaster for Copper Creek Brewery. He enjoys his job, but is Intrigued by…
A: Incremental profit refers to the additional profit that a company generates from a specific decision…
Q: Susan Jones has a job as a pharmacist earning $55,000 per year, and she is deciding whether to take…
A: Meaning:Expected net present value is calculated as the sum of product of net present values under…
Q: The average growth rate needs to be 8.75 percent.
A: The rule of 70 determines the approximate time taken for an amount to double given the interest rate…
Q: Based on their budget, Bryce and Sylvia have determined they can afford up to $2,500 per month for…
A: Private mortgage insurance (PMI) is the insurance payable on the balance of the loan per year. At…
Q: Rick wishes to purchase a new car and can afford monthly payments of up to $275 per month. Finance…
A: Time value tells the value received today by an individual is of more worth than the exact amount…
Q: Andy Mendoza makes handcrafted dolls, which he cells at craft fairs. He is considering…
A: The break-even sales are the sales where the business earns no profit or loss during the period. The…
Q: Ernie Bilko has a business idea. He wants to rent an abandoned gas station for just the months of…
A: Amount of Loan= 338500 Borrowing Rate = 6.5% Borrowing Rate per month(r) = 6.5%/12 =0.541667%…
Q: ts to buy a shopping complex in Vancouver 3 years after completing his Masters. The complex will…
A: The present value or today value will decrease with increase in period but will increase with…
Q: Chris is a financial manager for a small business. Right now, he's working on next year's budget.…
A: Chris should consider the needs of the company as a whole when making his budgeting decisions. While…
Q: Chelsea runs a factory that makes DVD players. Each S100 takes 9 ounces of plastic and 2 ounces of…
A: We have to first allocate the resources to the DVD Player which is earning more in terms of profit.
Q: You run a school in Florida. Fixed monthly cost is $5,373.00 for rent and utilities, $6,124.00 is…
A: At indifferent Point Profit in Both the option will be Same.
Q: Bob is considering buying a small shop on Vancouver Island. He has found a small shop with a…
A: The total resources allocated to a new venture investment under progress is known as the initial…
Q: Ernie Bilko has a business idea. He wants to rent an abandoned gas station for just the months of…
A: Loan amount= $331700 rate of interest= 6.5% time= 2 months= 2/12=1/6 years
Q: Mr. Nelson wants to purchase a 60-inch HD television set with all the bells and whistles so that he…
A: PMT (monthly payment): It refers to the amount received or saved or paid every month/year at a…
Q: You have chosen biology as your college major because you would like to be a medical doctor.…
A: The proportionate outcome of any event happening and not happening together is that event's…
Q: Tom is considering purchasing a $22400 car. After five years, he will be able to sell the vehicle…
A: The annual worth method is a capital budgeting technique that involves converting the cash inflows…
Marcus has created a budget for his upcoming trip to the theme park. Admission is 40% of the budget. He plans to spend 32% of his money on food, 23% on souvenirs, and save 5% for emergencies. He knows the admission will be $6 more than he will spend on food and souvenirs. How much money will Marcus need to take to the park?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Mike is considering adding a deli to his general store. The remodeling expenses and shelving costs are estimated to be $27,500. Deli sales are expected to produce net cash inflows of $7,300, $8,600, $9,700, and $9,750 for Years 1 to 4, respectively. Leo has a firm 3-year payback requirement. Should he add the deli?Gloria is planning on opening a cake shop. She has found a location that rents for $15,550 per year and it will cost her another $13,716 to furnish the shop and purchase all the necessary equipment. She plans on charging $20 for a cake and it will cost her $3 per cake for ingredients and $1.92 per cake for decorations and $1.59 per cake for the beautiful, colorful to-go boxes. What is the dollar breakeven point she will need to earn to cover her costs in the first year? Round to the nearest whole number.Carl is a student at a college. He has a part-time job with take-home pay of $525 every two weeks. He has received a scholarship of $4100 this year. a) Use the data provided to design a monthly budget for Carl. Show your calculations for his income and expenses. Identify each expense as fixed or variable. b) Is Carl earning enough to cover his expenses? If not, suggest how he could balance the budget
- Ernie Bilko has a business idea. He wants to rent an abandoned gas station for just the months of November and December. He will convert the gas station into a drive-through Christmas wrapping station. Customers will drive in, drop off their gifts, return the next day, and pick up their wrapped gifts. He needs $338,500 to rent the gas station, purchase wrapping paper, hire workers, and advertise. If he borrows this amount at 6 and 1/2% interest for those two months, what size lump sum payment will he have to make to pay off the loan? (Round your answer to the nearest cent.)Brianna is creating a budget. The expenses she pays monthly are $500 for rent, $120 for gas for her car, $100 for health insurance, $75 for auto insurance, $25 for renters' insurance, $110 for her cell phone, $170 for utilities, about $320 for groceries, and about $250 for entertainment. In addition, over the entire year she spends $12,000 for college expenses, about $800 on gifts for family and friends, about $1800 for vacations at spring and winter break, about $800 on clothes, and $500 in gifts to charity. Her income consists of a monthly, after-tax paycheck of about $2600 and a $3000 scholarship that she received at the beginning of the school year. a) What is the total of Brianna's monthly expenses? $ b) What is the total of Brianna's monthly income? $ c) What is her total monthly cash flow? $Sally is considering opening up a lemonade stand to earn some spending money over the summer. She estimates each glass of lemonade will cost her $1 to prepare for sale. What does she need to sell it for in order to make $1.50 of gross profit on each glass?
- Ben is a retired budget auditor who is currently looking for a new investment opportunity. He is considering two investments: Calzone Zone, a small restaurant specialising in calzone, and Icetown, a skating and curling rink. The projected cash flows of the two investments are shown below. Ben can only choose one projects, so he asks for your help and advice in reaching a decision on which investment to accept. He tells you he requires a 5% rate of return on his investment. Calzone Icetown Zone Cash flows £000 £000 Initial investment (885) 150 (300) 215 215 Cash flows year 1 Cash flows year 2 Cash flows year 3 Cash flows year 4 Cash flows year 5 195 200 215 230 215 265 (585) Assume the initial investment arises at the start of the first year of the project and all the subsequent cash flows occur at the end of the year. A. Calculate the net present value of each of the projects. Which project should Ben invest in? Show your workings. B. Calculate the internal rate of return of each of…Ben is a retired budget auditor who is currently looking for a new investment opportunity. He is considering two investments: Calzone Zone, a small restaurant specialising in calzone, and Icetown, a skating and curling rink. The projected cash flows of the two investments are shown below.Ben can only choose one projects, so he asks for your help and advice in reaching a decision on which investment to accept. He tells you he requires a 5% rate of return on his investment. Calzone ZoneIcetownCash flows£000£000Initial investment(885)(300)Cash flows year 1150215Cash flows year 2195215Cash flows year 3200215Cash flows year 4230215Cash flows year 5265(585)Assume the initial investment arises at the start of the first year of the project and all the subsequent cash flows occur at the end of the year. A. Calculate the net present value of each of the projects. Which project should Ben invest in? Show your workings. B. Calculate the internal rate of return of each of the projects. Which…Mike is considering quitting his job to start a bakery, his dream work. To do so, he would need to make an investment of $80,000 today. He estimates that the bakery would generate revenues of $90,000 over the next five years and would require $20,000 in expenses. At his current job he earns $50,000. Therefore, Mike estimates that the incremental cash flows from opening the bakery would be $20,000 per year for the next five years. Calculate the NPV of the business using a discount rate of 15%. Should Mike quit his job and start the bakery? Calculate the IRR for the project described in problem 3. If Mike requires a return of 15% on the business, should he start the bakery?
- Natalie and Curtis have been experiencing great demand for their cookies and muffins. As a result, they are now thinking about buying a commercial oven. They know which oven they want and that it will cost $17,000. The company already has $5,000 set aside for the purchase and will need to borrow the rest. Natalie and Curtis met with a bank manager to discuss their options. She is willing to lend Cookie & Coffee Creations Inc. $12,000 on November 1, 2020, for 3 years at a 5% interest rate. The terms provide for fixed principal payments of $2,000 on May 1 and November 1 of each year plus 6 months of interest. Prepare a payment schedule for the life of the note. Prepare the journal entry for the purchase of the oven and the issue of the note payable on November 1, 2020. Prepare the journal entries on May 1 and November 1 for the note. Determine the current portion of the note payable and the long-term portion of the note payable at October 31, 2021.Natalie and Curtis have been experiencing great demand for their cookies and muffins. As a result, they are now thinking about buying a commercial oven. They know which oven they want and that it will cost $17,000. The company already has $5,000 set aside for the purchase and will need to borrow the rest. Natalie and Curtis met with a bank manager to discuss their options. She is willing to lend Cookie & Coffee Creations Inc. $12,000 on November 1, 2020, for 3 years at a 5% interest rate. The terms provide for fixed principal payments of $2,000 on May 1 and November 1 of each year plus 6 months of interest. For Part II of the assignment, complete the tasks listed below. Prepare a payment schedule for the life of the note. Prepare the journal entry for the purchase of the oven and the issue of the note payable on November 1, 2020. Prepare the journal entries on May 1 and November 1 for the note. Determine the current portion of the note payable and the long-term portion of the…You've just graduated from college, and you are contemplating your lifetime budget. You think your general living expenses will average around $50,000 a year. For the next 8 years, you will rent an apartment for $16,000 a year. At the end of Year 8, you will want to buy a house that should cost around $250,000. In addition, you will need to buy a new car roughly once every 10 years, starting now and continuing for the next 50 years, costing around $30,000 each. In 25 years, you will have to put aside around $150,000 to put a child through college, and in 30 years, you'll need to do the same for another child. In 50 years, you will retire and will need to have accumulated enough savings to support roughly 20 years of retirement spending of around $35, 000 a year on top of your Social Security benefits. The interest rate is 5% per year. What average salary will you need to earn to support this lifetime consumption plan? Whoops! You just realized that the inflation rate over your lifetime…