Shannon purchased a franchise agreement to distribute electronic gadgets for 7 years. The agreement cost $1,800,000 and she had to make investments of $800,000 for the first 2 years to set up her showroom. The franchise generated $975,000 in profits each year from the 1st year to 7 years afterwards. At the end of year 7, she sold the furniture in her showroom for $110,000. a. What is the Internal Rate of Return (IRR)? % Round to two decimal places b. Should she have proceeded with this plan if her cost of capital was 20%?
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- OLA #11.3 Manvir purchased a franchise agreement to distribute electronic gadgets for 9 years. The agreement cost $1,700,000 and she had to make investments of $875,000 for the first 2 years to set up her showroom. The franchise generated $1,075,000 in profits each year from the 1st year to 9 years afterwards. At the end of year 9, she sold the furniture in her showroom for $110,000. a. What is the Internal Rate of Return (IRR)? b. Should she have proceeded with this plan if her cost of capital was 14%? Please reply using details with algebraOLA#11.3 Mitchell purchased a franchise agreement to distribute electronic gadgets for 7 years. The agreement cost $2,200,000 and he had to make investments of $875,000 for the first 2 years to set up his showroom. The franchise generated $1,025,000 in profits each year from the 1st year to 7 years afterwards. At the end of year 7, he sold the furniture in his showroom for $120,000. a. What is the Internal Rate of Return (IRR)? b. Should he have proceeded with this plan if his cost of capital was 18%? Kindly add all the decimals DO NOT ROUNDRandy rents commercial warehouses to various businesses. He purchased a warehouse in May of the current year. The cost of the warehouse was $250,000 The depreciation for the current year will be $ (rounded to the nearest dollar). If Randy continues to rent the warehouse for the next 40 years, the depreciation in the 40th year he owns the warehouse will be $ . (Please refer to the tables at the end of the chapter for the MACRS depreciation rates for this problem.) Please dont use any AI. It's strictly prohibited. Help me asap please.
- Rita is keen to grow her business and provided some information on two transactlons that she undertook during the year. The first was the purchase of an individual asset for the business called a Techpager. wwym ww The initial cost of the machine itself was $32,000 with several extra required fees and charges. Rita also decided to include a number of optional extras in the purchase. Installation of Techpager $1500 Transportation and Shipping Costs $600 Extended Warranty/Service Program $300 per year. This is an optional service offered by the company that covers all maintenance and repairs costs and is paid annually in advance Sorting and Stapling Unit $1200 (required to allow Rita to produce the booklets for her business) Custom Painting $400 (Rita does not need to have this done but has decided she wants the machine to match her office décor) Insurance $500 per year payable in advance Prepare a general Journal entry to record the individual of the purchase business called Techpager.Carl purchased an apartment complex for $1.4 million on March 17 of year 1. of the purchase price, $450,000 was attributable to the land the complex sits on. He also installed new furniture into half of the units at a cost of $63,000. (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) Note: Enter your answers in dollars and not in millions of dollars. b. What is Carl's allowable depreciation deduction for year 3 if the real property is sold on January 2 of year 3? Note: Do not round intermediate computations. Round your final answer to the nearest whole dollar amount. X Answer is complete but not entirely correct. Depreciation for year 3 $ 1,849 XAmy and Jevin Mounty own a textile design business in Beau Bassin. They bought a new computer which cost $4000 on 1 January 2020. The depreciation charge for the computer was 40% per annum using reducing balance method. Because of rapid developments in technology, the computer was out of date by end of 2021. Amy decided to sell the computer and was offered $600 which she accepted. The computer was sold on 31 December 2021. The financial year for the business runs from 1 January to 31 December.a. Calculate the accumulated depreciation charge and the net book value of the computer at the end of 2020 and 2021. b. Calculate the profit or loss on disposal of the computer.c. Show the Computer account and the Provision for depreciation Account for the year ended 31 December 2020. d. List down all the journal entries for the disposal of the computer.
- In year 1, Abby purchased a new home for $200,000 by making a down payment of $150,000 and financing the remaining $50,000 with a loan, secured by the residence, at 6 percent. As of January 1, year 4 the outstanding balance on the loan was $40,000. On January 1, year 4, when her home was worth $300,000, Abby refinanced the home by taking out a $120,000 mortgage at 5 percent. With the loan proceeds, she paid off the $40,000 balance of the existing mortgage and used the remaining $80,000 for purposes unrelated to the home. During year 4, she made interest-only payments on the new loan of $6,000. What amount of the $6,000 interest expense on the new loan can Abby deduct in year 4 on the new mortgage as home-related interest expense?In year 1, Abby purchased a new home for $200,000 by making a down payment of $150,000 and financing the remaining $50,000 with a loan, secured by the residence, at 6 percent. As of January 1, year 4 the outstanding balance on the loan was $40,000. On January 1, year 4, when her home was worth $300,000, Abby refinanced the home by taking out a $120,000 mortgage at 5 percent. With the loan proceeds, she paid off the $40,000 balance of the existing mortgage and used the remaining $80,000 for purposes unrelated to the home. During year 4, she made interest- only payments on the new loan of $6,000. What amount of the $6,000 interest expense on the new loan can Abby deduct in year 4 on the new mortgage as home-related interest expense? Multiple Choice $2,000 $6,000 $0 $5,000Tom & Dick go into business together as partnership, selling computer software through the internet. On January 1, they each put in $6,000 as capital, and this goes into the Tom&Dick account at their local bank. They buy computer equipment for $10,000 (paid by cheque) and set up for business in Dick’s dad’s basement. The cost of the computer equipment will be amortized over the next three years, with a disposal value of $1,000. Dick’s dad has agreed to let them operate out of his basement if they pay him a rent of 10% of their annual profit, or $1,200 per year, whichever is greater. At this point the total asset is: A. $6,000.00 B. $12,000.00 C. $10,800.00 D. $22,000.00 E. There is no possible answer
- PLEASE ANSWER THE QUESTIONS BELOW AND BE SURE TO SHOW THE FORMULAS AND THE WORK. THANIK YOU :) 1) Janet purchased a new house for $120,000, obviously not in New York. She paid $35,000 down and agreed to pay the rest over the next 25 years in 25 equal end-of-year payments, plus 9% compound interest on the unpaid balance. What will these equal payments be?Scrooge is thinking of selling his money lending business. He has been the sole owner for 6 years since his partner died. He has three employees – Bob, Cindy, and Dale. He decides to sell the company to the three of them. The business is worth $120,000. Each employee puts in $40,000 to buy the company. According to the Howey Test, was a security issued? A. Yes, because there was an equal investment of money B. No, because he did not register with the SEC C. Yes, because there was a common enterprise D. No, because there was a complete sale of the businessCharles Wilson has just purchased some equipment for his landscaping business. For this equipment he must pay the following amounts at the end of each of the next five years: $10,390, $7,960, $9,250, $12,940, and $11,640. If the appropriate discount rate is 6.425 percent, what is the cost in today’s dollars of the equipment Charles purchased today? (Round answer to 2 decimal places