consultancy services that would earn him around $2,500. If Ahmed decided to go on the camping trip what would be the incremental cost of that ?($) decision
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- DogSuppose that your car should be sold now for $5000. Is this a sunk cost? Give the explanation.Pls help with below homework. You graduate and decide you will start a consulting business out of your home. To perform the basic analysis needed for your field, you need to purchase testing equipment. The seller has 2 prices, one for incorporated businesses ($25,000) and one for individuals ($20,000). The salvage value of this equipment after 4 years is predicted to be $10, 000 in both cases. You and your partner are debating whether it is better to pay the higher purchase price and be able to depreciate the asset at a CCA rate of 30%, with the corporate tax rate of 40% OR to just keep them as a personal asset, with a sales tax rate of 10% at the time of sale. If we ignore the big picture arguments to be made here, what are the tax implications involved with each purchase/ sale option?
- (b) Samuel Gumede earns £39,000 a year working for a building company as a project manager. He is considering the possibility of leaving the company and starting his own business. To do this, he will have to use all his £60,000 savings that are currently invested at an interest rate of 2%. He estimates that the annual profit from his own business will be £50,000. Other relevant costs in starting his own business amount to £1,750. Required: Using the information above, calculate the net relevant benefit of Samuel starting his own business.You would like to buy a new car. The car costs will be $81 500. If you can earn 12% per annum, how much do you have to invest today to buy the car in three years? Select one: a. None of the given answers is correct. b. $58 244.14 c. $58 145.32 d. $58 010.09In this part of the project, you will be purchasing the home you chose in the Budget Project. You will need to obtain a loan from a financial institution since you cannot pay cash for your home. You will be researching three different loan scenarios and determining which loan option best fits your situation and needs. Purchase price of the home you chose from the Budget Project: ________$431,873______ Part 1: Financing your home Loan Scenario 1: In this scenario, your financial institution is offering you a 30-year fixed mortgage with a 20% down payment at a 3.43% fixed rate. Determine the following: Calculate the down payment for this loan. How much will you need to finance from the bank for this loan? What is your monthly payment? Use technology or the monthly payment formula in your text to get the monthly payment for this loan. What is the total cost of the loan over 30 years? How much of this cost is interest? What is the total you will expect to pay at closing for this loan…
- Question: . What is the estimated Internal Rate of Return (IRR) of the project? Should the project be accepted based on the IRR criterion? Why? You have determined in your mind that you would like to have a business of your own, although your father runs a family restaurant in your local city. You have therefore, decided to have a medium size snack and cocktails bar which will accommodate the cruise ship passengers who visit your city. You plan to keep the business for five years after which you will sell it off to your brother John for $2,000,000 and go off to do your Master’s Degree in the UK. Though you will be occupying the establishment from your grandmother for free, you have decided that you need to make some improvements to the property which will cost you $1,500,000. Additionally, you will spend $275,000 in bar stools, tables and decorations. If this space had been leased out, it would have fetched a lease rental of $75,000 per year. You will depreciate the assets over 7…Question: What is the project NPV? You have determined in your mind that you would like to have a businessof your own, although your father runs a family restaurant in yourlocal city. You have therefore, decided to have a medium size snackand cocktails bar which will accommodate the cruise ship passengerswho visit your city. You plan to keep the business for five yearsafter which you will sell it off to your brother John for $2,000,000and go off to do your Master’s Degree in the UK. Though you will beoccupying the establishment from your grandmother for free, you havedecided that you need to make some improvements to the property whichwill cost you $1,500,000. Additionally, you will spend $275,000 inbar stools, tables and decorations. If this space had been leased out,it would have fetched a lease rental of $75,000 per year. You willdepreciate the assets over 7 years using MACRS. You have determinedthat you would need an average cash balance of $15,000 and inventoryof $20,000 while…5.
- Congratulations on finding your dream home! The 4-bedroom, 3-bath home is perfect for you and your family. You have negotiated a great price with the seller of 159,000.Youhave10,000 saved to put down on this investment (down payment). You have decided that your monthly budget for a mortgage will be no more than $775. You have been talking with two different lenders to help you mortgage your dream home. Lender #1 will lend you up to $150,000 at 5% for 25 years. Lender #2 will lend you $159,000 at 4.5% for 30 years. a) Which lender would you use? Why? Calculate the monthly payment under each lender option. Use Table 14-1 to find the appropriate table factors. Label and show all of your work. b) Remembering your budget of $775 per month, how would your lender choice change if you did not have any money to use as a down payment? Recalculate the monthly payment under each lender option. Label and show all of your work.Suppose you are a cashed-up real estate investor considering purchasing an investment property in Brisbane to buy and then rent out. a) Find a two-bedroom apartment that is advertised for sale (provide a web link to the example). Given the listed (or estimated) sale price of this apartment (use apartment with price of $670,000), what would be the minimum rental income that would make it profitable to invest in this apartment? Make and state your assumptions (e.g., interest/discount rates, maintenance costs). b) Suppose interest rates went up. Would you now be willing to pay more or less for the same property?Q7. Amanda started a home delivery cafe and need to buy a motorcycle for delivery orders. She has two models in mind. Model A is a Hyundai, costs $9000 and with an expected life of 6 years; model B is a Toyota, costing $14 000 and with an expected life of 10 years. The maintenance costs are $800 for model A and $700 for model B annually. Assume that the opportunity cost of capital is 10 per cent. Which one should Amandabuy using:.A) the NPV perpetuity method and B)the EAC method?