The anticipated purchase of purchase of a fixed asset for $400,000, with a useful life of 5 years and no residual value, is expected to yield total net income of $300,000 for the 5 years. The expected average rate of return is 30%. a. True b. False

The expected average rate of return for a proposed investment of $589,600 in a fixed asset with a useful life of four years, straight-line depreciation, no residual value, and an expected total net income of $237,920 for the four years is (round to two decimal points) Oa. 0.40% Оь. 10.09% Oc. 20.18% С. Od. 0.81%

Compare the following alternatives based on the equivalent uniform annual value analysis, using a 15% annual interest rate with continuous capitalization.   Alternative A Alternative B  Initial Cost $18000 $25000 Annual Cost $4000 $3600 Salvage Value $3000 $2500 Life (years) 3 4

Kk201. An asset produces $150 in two years, and $250 in four years, and the current price has been calculated toreflect a rate of return of 9% annually. Using the definition that convexity = second derivative of pricedivided by price, find the convexity of this asset evaluated at the annual yield rate of 9%.

Complete the following using the present value formula or financial calculator. Note: Do not round intermediate calculations. Round your final answer to the nearest cent. Amount desired at end of period $ 20,000 20 years Length of time Rate Compounded 8% Annually Period used Periodic rate % PV of amount desired at end of period

Consider an asset that you purchase for $183.836. Its nominal resale value after 3 years of ownership is $16,948. At that time you plan to sell it and invest the proceeds elsewhere. What is the net present cost to you of holding this asset if the nominal discount raM is 6%?

Larkspur company is considering buying equipment for $360,000 with useful life of 5 year and. Financial accounting

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Evaluate the following alternatives through the VPN, VAUE and IRR of the best option. To evaluate the alternatives, consider 6.35% inflation, 2.5% liability rate (risk premium) and x% profit assigned according to the agenda (data to calculate the TMAR). Option A It consists of an investment of Q250,000, to obtain income during the 10 years of useful life for Q100,000 / year, increasing 15% each year the income is interrupted in the last 2 years. The operating costs are of Q15,000 per year Option B Q250,000 must be invested. The investment lasts 4 years and has operating expenses of Q100,000 / year, increasing Q15,000 each year. There is a single salvage value of Q600,000 at the end of the useful life. Option C Q300,000 is invested for advertising expenses, in addition, Q100,000 / year must be given for five years of investment. Income is reported of Q200,000 per year with a salvage value of Q500,000 at the end of the investment.

The expected average rate of return for a proposed investment of $639,000 in a fixed asset, with a useful life of 4 years, straight-line depreciation, no residual value, and an expected total net income of $335,000 for the 4 years, is (round to two decimal points). Oa. 13.11% Ob. 52.43% 'c. 26.21% Od. 13.90%