A transport company purchased a truck for $40,000. The operating cost was $3,800 per month, with average revenues of $5,500 per month. The truck was sold for $12,000 after two and a half years. The company's actual rate of return was closest to:

The company buys an asset that costs $11,200 and returns net cash flow of $160 per month for 3 years, followed by $270 per month for 3 additional years. The company financing rate is 10.9% compounded monthly. Find the asset's annualized internal rate of return and net present value. O The IRR and NPV equal 16.69% and $1,860.86 O The IRR and NPV equal 15.69% and $1,960.86 O The IRR and NPV equal 17.69% and $2,060.86 O The IRR and NPV equal 19.69% and $2,160.86

You are an employee of University Consultants, Limited, and have been given the following assignment. You are to present an investment analysis of a small retail income-producing property for sale to a potential investor. The asking price for the property is $1,360,000; rents are estimated at $174,080 during the first year and are expected to grow at 2.5 percent per year thereafter. Vacancies and collection losses are expected to be 10 percent of rents. Operating expenses will be 35 percent of effective gross income. A fully amortizing 70 percent loan can be obtained at 6 percent interest for 30 years (total annual payments will be monthly payments × 12). The property is expected to appreciate in value at 3 percent per year and is expected to be owned for five years and then sold.   Required: a. What is the first-year debt coverage ratio? b. What is the terminal capitalization rate? c. What is the investor’s expected before-tax internal rate of return on equity invested (BTIRR)? d.…

HydroKlean LLC, an environmental soil cleaning company, borrowed $3.5 million to finance startup costs for a site reclamation project. How much must the company receive each year in revenue to earn a rate of return of 25% per year for the 5-year project period?

Your IT company is working on a four-month project for a local mining company. The total planned value of the project (BAC) is $600,000. You are at the end of month three.  By the end of month three you scheduled to spend $500,000(PV). The actual cost through this three-month mark is $450,000 (AC). The total work completed at the end of month three is 94 percent.   Calculate the earned value, EV=

You are a small business owner and have purchased a $10,000 asset that you can depreciate over four years ($2,500/per year). Under accelerated depreciation, you would be allowed to depreciate 75% of the asset's value immediately in the first year and the remaining 25% in the second year. Assume that the discount rate is 10%. Further suppose that your business usually makes $56,000 of annual profit, on which it pays a 21% tax every year. Should you claim accelerated depreciation, or should you depreciate the asset over the 4 years at $2,500 per year?

Juniper Design Limited of Manchester, England, provides design services to residential developers. Last year, the company had net operating income of $490,000 on sales of $2,100,000. The company's average operating assets for the year were $2,300,000 and its minimum required rate of return was 11%. Required: Compute the company's residual income for the year. Residual income

Use an excel spreedsheet to answer this question: The National Potato Cooperative purchased a deskinning machine last year for $150,000. Revenue for the first year was $ 50,000. Over the total estimated life of 8 years, use a spreadsheet to estimate the remaining equivalent annual revenues (years 2 through 8) to ensure breakeven by recovering the investment and a return of 10% per year. Costs are expected to be constant at $42,000 per year and a salvage value of $10,000 is anticipated.

A company that manufactures brushless blowers invested $650,000 in an automated quality control system for blower housings. The resultant savingswas $160,000 per year for 5 years. If the equipment had a salvage value of $50,000, what rate of return per year did the company make?

A four-year-old truck has a present net realizable value of $6,000 and is now expected to have a market value of $1,800 after its remaining three-year life. Its operating disbursements are expected to be $720 per year. An equivalent truck can be leased for $0.40 per mile plus $30 a day for each day the truck is kept. The expected annual utilization is 3,000 miles and 30 days. If the before-tax MARR is 15%, find which alternative is better by comparing before-tax equivalent annual costs. Solve, a. using only the preceding information; b. using further information that the annual cost of having to operate without a truck is $2,000.