Your answer is partially correct.Sarah just graduated from college. Since she is starting her own business, it's time to upgrade from her clunker to a reliable vehicle.Sarah has the option to purchase a new car for her business at a cost of $23,232 (life of 7 years with no salvage value), estimating thatit would help her bring in additional annual net operating cash flows of $9,600 over the life of the car.Determine the simple payback period and the IRR for this investment. Sarah expects her business income to be subject to a 30% taxrate. (Round simple payback period to 3 decimal places, e.g. 15.256 and IRR to 2 decimal places, e.g. 15.25%. Round intermediate calculationsto 2 decimal places, e.g. 15.25.)Simple payback periodIRR2.420 years36.69 %

Payback period is a financial metric used to determine how long it takes to recover the initial…

Answered: Sarah just graduated from college.…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter9: Acquisitions Of Property

Section: Chapter Questions

Problem 64P

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Ruth just graduated from college. Since she is starting her own business, it's time to upgrade from her clunker to a reliable vehicle. Ruth has the option to purchase a new car for her business at a cost of $21,528 (life of 7 years with no salvage value), estimating that it would help her bring in additional annual net operating cash flows of $10,400 over the life of the car. Determine the simple payback period and the IRR for this investment. Ruth expects her business income to be subject to a 30% tax rate. (Round simple payback perlod to 3 decimal places, eg. 15.256 and IRR to 2 decimal places, eg. 15.25%. Round Intermediate calculations to 2 decimal places, eg. 15.25) Simple payback period IRR years. %
jitu
Linda just graduated from college. Since she is starting her own business, it’s time to upgrade from her clunker to a reliable vehicle. Linda has the option to purchase a new car for her business at a cost of $31,416 (life of 7 years with no salvage value), estimating that it would help her bring in additional annual net operating cash flows of $7,700 over the life of the car.Determine the simple payback period and the IRR for this investment. Linda expects her business income to be subject to a 30% tax rate. (Round simple payback period to 3 decimal places, e.g. 15.256 and IRR to 2 decimal places, e.g. 15.25%. Round intermediate calculations to 2 decimal places, e.g. 15.25.) Simple payback period enter a number of years rounded to 3 decimal places Correct answeryears IRR enter percentages rounded to 2 decimal places %
Linda just graduated from college. Since she is starting her own business, it’s time to upgrade from her clunker to a reliable vehicle. Linda has the option to purchase a new car for her business at a cost of $31,416 (life of 7 years with no salvage value), estimating that it would help her bring in additional annual net operating cash flows of $7,700 over the life of the car.Determine the simple payback period and the IRR for this investment. Linda expects her business income to be subject to a 30% tax rate. (Round simple payback period to 3 decimal places, e.g. 15.256 and IRR to 2 decimal places, e.g. 15.25%. Round intermediate calculations to 2 decimal places, e.g. 15.25.) Simple payback period enter a number of years rounded to 3 decimal places years IRR enter percentages rounded to 2 decimal places %
Munabhai
Baghiben
Note: To fully answer this question, the use of numerical approximation methods is required. A spreadsheet may be useful too. Robert has struck an agreement to buy his dad's car. The sale takes place when Robert can pay the depreciated value of the car. The car is valued at $38,000 today but loses 0.5% in value each month due to depreciation. Robert starts a regular savings plan to buy the car and plans to invest $100 at the end of each month into an account that earns him 0.25% per month. (a) Calculate, to the nearest month, how long Robert must wait before he can buy the car? (b) Robert wants to have the car in ten years and so he searches for a bank account that can pay a higher interest rate. What is the minimum rate he must look for to achieve his goal? (c) The best offer rate Robert can find is 0.8% per month, but he is determined to get the car. He plans to revise his monthly savings amount. Calculate the minimum this has to be to achieve his goal.
Mr. Russ T. Steele sels his old vehicle for $5000 (you get more if you private sale!) and pays cash for a used (but newer vehicle) that costs $10.000. He also understands that he needs to allow for maintenance and operation costs of his vehicle. He estimates that these costs will be approximately $2000 a year and estimates that the costs will increase by $100 per year. He hopes to keep the vehicle for five years and then sell it for an estimated value of $2000. Mr. Steele has an MARR of 8%. The equivalent annual cost of the cash flow associated with his purchase is most nearly: $-1,850 $-3,100 $3,000 $3,800
solve the following problem: His father has asked him to advise him on remortgaging the house (remortgaging means taking out a new loan to pay for the house, depending on the fact that the value of the house has risen and they give him a loan for a greater amount). The house was purchased about 8 years ago at an initial value of $140,000 and a rate of 5.5% per year compounded monthly for twenty years. When performing a revaluation of the house the market value is $185,000. Therefore, a bank offers him an offer of 5.25% annual capitalized weekly to pay off the outstanding debt of the house and 6.5% annual capitalized daily to cover debts that his father has in credit cards and loans, the term would be for a few 15 more years (both loans). His father has a debt in cards in the order of $45,000 and you want to know how much they would lend you to cover the cards, since due to market conditions they only offer you a maximum amount of 80% of the market value of the house.
Following the last question - John is evaluating the idea to open an ice cream shop on a piece of land. The followings are what he might include in the cash flows: Instead, John can earn $120,000 if he decides to sell the land today. He bought this land for $350,000 two years ago. • Outfitting the space for an ice cream shop would require a capital expenditure of $150,000 today. It'll require an investment of $30,000 in inventories for making the ice creams today. What are the opportunity costs of opening the ice cream shop? 1 · . -$120,000 O-$180,000 O-$350,000 O-$270,000 4
ASAP!!
Maria is a wedding planner. She purchases a laserjet printer for invitations, save-the-date postcards, etc. The laserjet costs $400. The laserjet has an expected life of 5 years; at the end of which time Maria expects a rebate of $20.00 when she turns in her old laserjet and purchases a new one. Maria uses the sum-of-the-years'-digits method to calculate depreciation.What is the annual depreciation in the first year?$What is the book value at the end of the second year?$What is the accumulated depreciation by the end of year 3?$

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