You are preparing to produce some goods for sale. You will sell them in one year and you will incur costs of $70,000 immediately. If your cost of capital is 6.9%, what is the minimum dollar amount you need to sell the goods for in order for this to be a non-negative NPV? The minimum dollar amount is $ (Round to the nearest dollar.)

(Additional Questions Next Page) 5. You are considering buying a food truck and other equipment to make a little money in the fall and spring. You are projecting that you can generate the following net cash flows after paying operating expenses: $3800 next month and $2800 the following month. Then you will take the winter off and start back up again next spring, when you hope to earn $2500 6 months from now, $3700 7 months from now, and $4500 8 months from now, $3500 9 months from now, and $4500 12 months from now. (Discount the first $3800 1 month, the $2800 2 months, etc.) Use a discount rate of 6% per year. Show all work below. What is the present value of this cash flow for the first year of operation? (do the problem algebraically by hand, then confirm using one of the Excel methods). What is the value of the cash flow (from the food truck problem) if you do not discount the numbers? 7. Could you use a PMT formula to solve this problem? Why, or why not? 6.

Consider the rental rate of capital for an appliance rental company such as Rent-A-Center. Suppose Rent-A-Center buys televisions at the market price (P) of $3,500 each and rents them out to customers. The company faces an interest rate (r) of 15% per year, and televisions depreciate at 15% per year. Fill in the following table with the interest cost per year and the loss due to wear and tear for each television per year. Borrowing cost per year Depreciation cost G Cost (Dollars per television) Assume that firms renting televisions earn zero profit. Using the information in the previous table, the rental rate of capital, in this case, is per year per television. s to Suppose the depreciation rate decreases due to improvements in the materials used to make televisions. This should cause the equilibrium rental rate Show Transcribed Text The last question option is either "Increase" or "Decrease".

Sally is thinking about starting a new business. The company would require $700,000 of assets, financed with 40% debt and 60% equity. She will go forward only if she thinks the firm can provide an ROE of at least 15.9%. Operating at a profit margin of 12%, what is the minimum amount of sales that must be expected to support starting the business? Your answer should be between 472000 and 595000, rounded to even dollars (although decimal) places are okay), with no special characters.