A philanthropist is looking to invest in new start-up companies. She has decided to invest $200,000 in a company started by two inventors. It is decided the philanthropist will earn a 10% return on her investment and then the profits of the new company will be divided into the ratio 1:2:2. The philanthropist is represented by the first person in the ratio. Determine the amount the philanthropist receives and the amount each inventor receives if the profit is $78,000
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- Dean and his sister decide to begin a gardening business and will need $4000. To do so, Dean invests $800 compounded quarterly at 10% and Susan invests $1000 compounded semi-annually at 8%. How many years will it take them to accumulate the money needed for the business?Assume you wrote up a proposal requesting $5000 for charity. The money would be used to buy food that volunteers (employees from the company) would distribute to the homeless on Saturday. The proposal is approved and you receive the money. However, the CEO comes to you and asks, "What will be the return on the investment?" How would you reply?The store owner hires 2 sellers with a total payment fund of 150 thousand rubles per year. Pays a monthly rent of 60 thousand rubles. He invested his own capital of 300 thousand rubles in the business, donating 30 thousand rubles per annum, which he would have had with another placement of capital. He estimates his entrepreneurial talent at 100 thousand rubles a year. A large trading company offers him a place with a salary of 200 thousand rubles a year. Calculate the amount of accounting and economic costs and draw conclusions.
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- 1. Marie had a good year. She received the following prizes and awards: - an iPad from The Famous Daytime Talk Show with a fair market value of $500 - lottery winnings of $1,000 received in cash - a plaque worth $25 plus $100 of Godiva chocolate in recognition for 100 days on the job without an accident - a $10,000 cash prize from American Idol How much of her prizes and awards should Marie report on her tax return? $11,500; the award from her job is excluded a. b. $11,600; the plaque may be excluded $11,625; everything is included at the highest amount C. d. $11,000; only cash prizes and awards are included None, they are all excluded from income e.One day, the Master was going on a trip and decided to entrust his wealth to three of his most trusted servants. The wealth shall be given to each servant based on the Master's assessment of their talents. To his first servant, he entrusted PHP500,000. To his second servant, believing that he can make wise choices as well, he also gave an amount of PHP500,000. Finally, he called on his third servant and gave him PHP500,000. The Master then went on his journey and told the servants he will not be back for a long time. Since the first servant was a very smart person, he decided to invest the PHP500,000 given to him. He was very pleased that he was quoted a long-term investment for 5 years at 8% per annum compounded annually, and decided to invest the money in that institution. The second servant saw what the first servant did and also decided to invest the money. However, when given the choice by the investment firm, he did not understand simple and compound interest. In the end, he…Ten years ago, Valeria and Issac each invested $300,000 to create Xava Corporation. Xava develops and manufactures rock climbing and bungee jumping equipment. The business has become very profitable (it now is valued at $3,000,000), and Issac would like to cash out the profits and sell the business. Valeria, however, wants to reinvest the profits and expand the business into ice diving. Because they have different expectations, Valeria and Issac agree that the best solution is to divide up the company. Issac will receive the bungee division; Valeria, the rock climbing. After the reorganization, Issac sells his stock in the bungee division for $1,500,000 at the beginning of the current year. Valeria retains her ownership of the rock climbing division.. Valeria sells the rock climbing stock for $2,000,000 at the end of six years. Using a 7% discount factor, determine whether Issac or Valeria made a better decision. Assume a 20% tax rate on long-term capital gains. Determine the present…
- You plan to be a doting parent for your three adorable tots (you love to plan ahead). You plan to set up a fund to pay for their law school educations immediatley after their undergraduate studies. The fund will be set up to pay each little one $175,000 for the first year of school, then increase 4% per year through graduation. Assume the kids graduate after 3 years of law school. The oldest tot begins law school in 18 years; the second one starts two years later, and the last little one starts one year after the second. You have set aside $75,000 thus far. You earn 8% on your investments. Next year's salary is expected to be $220,000. What fraction of your salary must you set aside if you get raises of 2% per year to make your vision a reality? You start your savings based on income one year from now and you make your last payment on the first child's first day at law school.Ashley Olson is early in her career and is now employed as the managing editor of a well-known business journal. Although she thoroughly enjoys her job and the people she works with, she would really like to be a literary agent. She would like to go on her own in about 5 years and figures she'll need about $35,000 in capital to do so. Given that she thinks she can make about 7 percent on her money, use Worksheet 11.1 to answer the following questions. How much would Ashley have to invest today, in one lump sum, to end up with $35,000 in 5 years? Round the answer to the nearest cent. $ If she's starting from scratch, how much would she have to put away annually to accumulate the needed capital in 5 years? Round the answer to the nearest cent. $ How about if she already has $10,000 socked away; how much would she have to put away annually to accumulate the required capital in 5 years? Round the answer to the nearest cent. $ Given that Ashley has an idea of how…