Hello tutor please provide correct answer general Accounting The Portland Stallions professional football team is looking at itsfuture revenue stream from ticket sales. Currently, a seasonpackage costs $450 per seat. The season ticket holders have beenpromised this same rate for the next three years. Four years fromnow the organization will raise season ticket prices based on theestimated inflation rate of 2.75%.What will the season tickets sell for in four years?

Step 1: Define Inflation When a country's economy experiences inflation, it means that consumers'…

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Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter13: Other Financing Alternatives

Section: Chapter Questions

Problem 1bM

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The Diagonal Stamp Company, which sells used postage stamps to collectors, advertises that its average price has increased from $1 to $9 in the last 10 years. Thus, management states, investors who had purchased stamps from Diagonal 10 years ago would have received a 100% rate of return each year. What is the annual rate of return? The answer in the textbook is given as 23.11%. Can you please show how to get that?
A company is considering getting involved in electronic commerce. A modest e-commerce package is available for $24,000. If the company wants to recover cost in 2 years, what is the equivalent amount of new income that must be received every 6 months if the interest rate is 8% per quarter? Round your answer to 2 decimal places.
Postal Express is considering the purchase of a new sorting machine. The sales quote consists of quarterly payments of $37,200 for five years at 7.6 percent interest. What is the purchase price? Can the excel and calculator solution be provided?
Your company will generate $82,000 in annual revenue each year for the next six years from a new information database. If the appropriate discount rate is 10.75 percent, what is the present value?
Customers buy this product on their 65th birthday when they retire. The annuity will make 20 annual payments of $80,000. The first annual payment of $80,000 will occur on the customer’s 68th birthday (customers typically rely on their personal savings to travel for the first few years). For this product, Wagon Financial can invest the customers’ money at 12% per annum effective.1. What price should Wagon Financial charge for this product?
Aunt Tillie has deposited $33,000 today in an account which will earn 10 percent annually. She plans to leave the funds in this account for seven years earning interest. If the goal of this deposit is to cover a future obligation of $65,000, what recommendation would you make to Aunt Tilie? China Manufàcturing Agents, Inc. is preparing a five-year plan. Today, sales are $1,000,000. If the growth rate in sales is projected to be 10 percent over the next five years, what wil the dollar amount of sales be in year five? Dan and Jia are newlyweds and have just purchased a condominium for $70,000. Since the condo is very small, they hope to move into a single-family house in 5 years. How much will their condo worth in 5 years if inflation is expected to be 8 percent? You deposit $17,000 each year for 10 years at 7%. Then you earn 9% after that. If you Jeave the money invested for another 5 years how much will you have in the 15th year? If you deposit $45,000 into an account earming 4%…
You have been issued a patent giving you exclusive rights to sell a new type of software. You believe the patent will produce sales of $239,000 each year as long as the software remains in demand. Assume a discount rate of 8% compounded annually and payments are made at the end of each year. What is the value today of having the patent, assuming sales last for (a) three years, (b) four years, or (c) five years? Note: Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places. (FV of $1, PV of $1, FVA of $1, and PVA of $1) a. b. C. Annuity Payment $ 239,000 239,000 239,000 Annual Interest Rate Compounded 8% Annually 8% Annually 8% Annually Period Invested 3 years 4 years 5 years Present Value of Annuity
The cost of a college education is currently $15,000 per year. The expected annual inflation rate over the next five years is 3%. How much money should be deposited at the end of each year for five years in an account earning 10% compounded quarterly so that the balance of the account after five years covers the cost of a college education?
The Home Depot is clearing out lawn mowers for $399.75 in an end-of-season sale that ends on September 30. Alternatively, you could wait until April 1 (assume February is in a non–leap year) and pay $419.95 on the same lawn mower. Assume your money can earn simple interest of 4.72% on a short-term investment.a. Which option should you choose?b. How much money will you have saved on September 30 by making that choice?
Econo-Cool air conditioners cost $400 to purchase, result in electricity bills of $169 per year, and last for 5 years. Luxury Air models cost $595, result in electricity bills of $138 per year, and last for 8 years. The discount rate is 25%. a-Now you remember that the inflation rate is expected to be 10% per year for the foreseeable future. What is the equivalent annual cost of the Econo-Cool and Luxury Air model? (Do not round intermediate calculations. Round your answers to 2 decimal places.)
How many years will it take Rexchem, Inc., to accumulate $725,000 for a chemical feeder, if the company deposits $50, 000 each year, starting one year from now, into an account that earns interest at 10% per year? (Round up your answer to an integer value.) Rexchem, Inc., will take years.
The LA times recently carried a story that tuition could be increased in the University of California system by as much as 15% per year over the next four years. What would be the tuition in four years if the current tuition is 14, 100 per year now.

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