Question 5 Part A: You are considering a large commercial property purchase. You will need an initial deposit of $100,000. The annual revenues for the property are expected to be $15,000 starting in year 1. Annual operating and maintenance costs are expected to be $8,000 every year starting in year 1. The property is expected to last for 30 years. What is the ROR? Question 5 Part A: Choose the correct Cash Flow Diagram for this scenario from the following choices. Option A $100,000 Option C -$100,000 1 2 $15,000 $8,000 $15,000 2 -$8000 Option B $15,000 0 А 31 1 2 30 $8,000 $100,000 Option D $15,000 0 А 31 1 2 30 -$8000 -$100,000

Your company is planning to purchase a new log splitter for is lawn and garden business. The new splitter has an initial investment of $180,000. It is expected to generate $25,000 of annual cash flows, provide incremental cash revenues of $150,000, and incur incremental cash expenses of $100,000 annually. What is the payback period and accounting rate of return (ARR)?

You are considering a large commercial property purchase.  You will need an initial deposit of $100,000.  The annual revenues for the property are expected to be $15,000 starting in year 1.  Annual operating and maintenance costs are expected to be $8,000 every year starting in year 1.  The property is expected to last for 30 years.  What is the ROR?

A new baseball stadium is being considered to be built in a metropolitan area by High Tech, Inc., at a cost of $50M. It is estimated that the annual maintenance cost will be $100K. The construction company recommends a major renovation every 50 years at a cost of $10M. If the corporation wants to set up a trust fund to pay for the stadium, its maintenance, and periodic renovations for an undefined number of years to come, what amount should be invested in the trust fund if the fun earns an annual interest rate of 6%? Group of answer choices $52,223,000 $60,566,667 $60,666,667 $73,500,429 $58,600,000

A regional municipality is studying a water supply plan for its tri-city and surrounding area to the end of year2070. To satisfy the water demand, one suggestion is to construct a pipeline from a major lake some distanceaway. Construction would start at the beginning of 2030 and take five years at a cost of $30 million per year.The cost of maintenance and repairs starts after completion of construction and for the first year is $2 million,increasing by 2 percent per year thereafter. At an interest rate of 8 percent, what is the present worth of thisproject? Assume all cash flows take place at year-end. Consider the present to be the end of 2025/beginningof 2026. Assume there is no salvage value at the end of year 2070.Click the icon to view the table of compound interest factors for discrete compounding periods when i=8%.The present worth of this project is $ million.(Round to two decimal places as needed

A regional municipality is studying a water supply plan for its tri-city and surrounding area to the end of year 2070. To satisfy the water demand, one suggestion is to construct a pipeline from a major lake some distance away. Construction would start at the beginning of 2030 and take five years at a cost of $15 million per year. The cost of maintenance and repairs starts after completion of construction and for the first year is $3 million, increasing by 2 percent per year thereafter. At an interest rate of 6 percent, what is the present worth of this project? Assume all cash flows take place at year-end. Consider the present to be the end of 2025/beginning of 2026. Assume there is no salvage value at the end of year 2070. Click the icon to view the table of compound interest factors for discrete compounding periods when i = 6%. The present worth of this project is $ million. (Round to two decimal places as needed.)

If the interest rate is 4%, what is the approximate future value of $15,000 in 10 years? $15,900 $17,949 $10,133 $22,204