Gloria is planning on opening a cake shop. S has found a location that rents for $15,550 year and it will cost her another $13,716 to furnish the shop and purchase all the necessary equipment. She plans on chargin $20 for a cake and it will cost her $3 per cal for ingredients and $1.92 per cake for decorations and $1.59 per cake for the beautiful Jorful to hovor. Over What is the

Mike and Terri estimate that they want to buy a house for $186,000.00, and they need to make a down payment of 17.5% of the cost of their house. If they have 18 months to save for the down payment, how much do they need to invest into an monthly so that they can reach their goal? account earning 4.518% compounded

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

The Rite family wishes to insulate the attic of their home to prevent heat loss. They are considering R-11 and R-19 insulation. They can install R-11 for $1,600 and R-19 for $2,400. They expect to save $125 per year in heating and cooling expenses if R-11 is installed. How much extra must they save in utility expenses per year in order to justify the R-19 insulation if they expect to recover the extra cost in 6 years at an interest rate of 6% per year? The extra savings from the utility expenses per year in order to justify the R-19 insulation must be $( per year.

Robert Jones and his wife Suzie recently opened an investment account with the intention of saving enough to purchase the house of their dreams, a beautiful, little white house on the corner of Michigan Avenue and Maple Street.  Their goal is to have $45,000 down in five years.  Their account will guarantee them a return of 8% compounded annually.  How much do they need to put into the account right now to reach their objective? $46,778.96 $39,546.09 $51,214.75 $30,626.24

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When Gustavo and Serrana bought their home, they had a 5.9% loan with monthly payments of $870.60 for 30 years. After making 78 monthly payments, they plan to refinance for an amount that includes an additional $35,000 to remodel their kitchen. They can refinance at 4.2% compounded monthly for 25 years with refinancing costs of $625 included with the amount refinanced. How long will it take to pay off this new loan if they pay $1200 each month?

After two years in business selling donuts in a local office building, Lisa wants to move on. Zeke wants to buy out the last two years of Lisa's four-year contract. He estimates he can make $6,400 in the first year and $7,200 in the second year. If the discount rate is 6%, the most Zeke should be willing to pay is Click here to access the TVM Factor Table Calculator O $12,707.07 O $12,756.85 O $12,445.71 O $12,201.68

Kaleo has made up his mind—he wants a pool in the family’s backyard! He figures his kids and spouse will be thrilled. However, to cover the cost of the pool, they’ll have to pack up and live away from home for a few weeks during the summer to rent their home to vacationers. He crunched the numbers based on the following estimates. 1. Cost of pool/installation   $50,000 2. Life of the pool (no salvage value)   20 years 3. Annual net cash inflows from renting (net of cash expenses for renting and pool maintenance)   $6,500 4. Tax rate   23% 5. Average rate of return    8% Kaleo’s daughter, Sarah, found the above information written on a sheet of paper in his office, along with the following notes. “This is a no-brainer! We’ll recover the cost of this pool in just 7 years, even though we plan to live here until we’re old and gray, or at least as long as the pool hangs on. If we can rent our house out for just 3 weeks each year, it’ll be almost pure profit that we can put toward paying off…

--you live in the mobile home for four years, but your roommate also pays you $3,000 a year, paid to you at the beginning of each year.  The cost of the mobile home is $15,000, paid immediately.  At the end of four years, you can sell the mobile home for $9,000.  You have no maintenance on the home because you were such a smart manager Using Present Value, what is the cost of your college housing (positive or negative), assuming an interest rate of 8%?