Olivier wants to buy a hot dog stand that will generate $118,000 per year forever. Because he needs some time to tweak the recipe, he plans to delay production and start generating cash flows 6 years from today. If the discount rate is 8%, what is TODAY's fair price for this hot dog stand?

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A: Financial planning is very important for achieving the financial objective so there is no problem…

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A: Simple Interest is method of computing interest where compounding is ignored and interest is…

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A: The following loan has been taken to purchase the preferred home and the subsequent payments are…

Q: Vince plans to open a self - serve grooming center in a storefront. The grooming equipment will cost…

A:

Q: Suppose that the firm Cherry Blossom has an orchard they are willing to sell today. The net annual…

A: This question is based on the concept of fair value asset pricing which says that the fair market…

Q: Bill plans to open a do-it-yourself dog bathing center in a storefront. The bathing equipment will…

A: concept. Profitability Index (PI). Profitability Index = present value of cash inflowspresent value…

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A: Sonja Jensen is considering buying a fast-food franchise. The franchise will operate on a lot for…

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A: The purchase decision is a decision that takes into consideration many factors such as the cost of…

Q: CW Pharmaceuticals is considering a drug project that costs $3.75 million today and is expected to…

A: Initial Investment = Present value of future cash flows

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Q: John Smith is looking to open an ice-cream parlor place in the neighborhood where he resides. He has…

A: The calculation of depreciation is provided in the step 1.

Q: ly, how long Will you Have logies!) В years. 2 years. ars

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A: Growth rate of the payments states the compounded annual rate of the growth of business alone with…

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A: To answer this question, we need to determine the net present value (NPV) of the factory. The NPV is…

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A: The initial cost of the project is $160,000.The annual after-tax cash flow is $40,000.The project…

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A: Present Value is the current price of future value which will be received in near future at some…

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A: rate of return is the rate the investment generates while holding it, It is basically the IRR of the…

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A: This is a case of loan amortization. When we take out a loan this loan is usually amortized and we…

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A: Future value can be calculated  by using the following formula  FV = Present Value (1+r)n

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A: Initial investment = $80,000Incremental cash flow = $20,000Discount rate = 15%Useful life = 5 years

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Real Estate

Real estate means ownership of land along with the assets and natural resources that exist on the land. These properties are in real/physical form which is tangible. Real estate simply means land or addition made to land permanently like constructing a residence or different buildings. People invest in real estate to either reside or for wealth creation. Many people investing in real estate further lend the place for occupation or businesses in return for a monthly payment.