Janice opened a franchise short of Krispy Kreme Doughnuts in her hometown. She has been working really hard but the business doesn't seems to have taken off like thought it would so she is considering closina up shop and trving something new.
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- Meg O’Byte wants to buy a new computer for her business for Internetaccess on a cable modem. The computer system cost is $5,100. The cablecompany charges $200 (including the cable modem) for installation and hasa $50 a month usage fee for businesses, paid at the end of the month. Megexpects to buy the system with a $100 down payment, financing the balanceat 8 percent over the next 4 years. She will sell the computer for $1,000when she upgrades. She expects a $500 a month increase in cash flow and isin the 25 percent tax bracket.a. The start-up costs are __________________.b. The PVC is __________________.c. The PVB is __________________.d. The monthly payment for the computer is __________________.Jane James owns an appliance store. She usually receives $50,000 worth ofappliances per month. She does not like to owe people money and alwayspays her bills on the day she receives the invoice. Someone told her thatif she delayed payment, she could actually increase her profit because themoney would be earning interest in her account. She went through her billsand found that she actually had an additional 10 days, on average, to payher invoices. She also found that she was earning 2 percent interest on themoney she had in her money market savings account.a. If she delayed payment by the 10 days, how much additional interest wouldshe earn for the year?b. Explain how this problem represents a disbursement float.Camila Torres wants to buy a new high-end audio system for her car. The system is being sold by two dealers in town, both of whom sell the equipment for the same price of $2,000. Camila can buy the equipment from Dealer A, with no money down, by making payments of $173.98 a month for 12 months; she can buy the same equipment from Dealer B by making 36 monthly payments of $66.43 (again, with no money down). Camila is considering purchasing the system from Dealer B because of the lower payment. Find the APR for Dealer A. Round the answer to 2 decimal places. % Find the APR for Dealer B. Round the answer to 2 decimal places. % What do you recommend?
- Jane started to work this August. Since she received her first salary at the beginning of August, she has been deposited $1,500 in a special account. She will insist doing so once she receives her salary. She is paid every 2 weeks (half month). The interest rate is 4.1%. She plans to a buy a three-bedroom house in this city, which is about $600,000. The down payment is 20% of the house price. Please estimate for her how many years later the balance in this saving account is enough to pay the down payment of the new house. Group of answer choices 74.35 years 3.12 years 3.15 years 75.2yearsAfter 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 $12,201.68Peter got a 8-year assignment in Argentina. Consequently, he will rent out his three- bedroom house in Hancock to an old friend, and given their friendship, Peter only requires end of the year payments (thus no monthly pmts) to be deposited in a savings account created solely for this purpose. Rental income will be 13,709 dollars per year but maintenance/repair costs will be 503 dollars in the first year and thereafter increase by 213 dollars per year. The tenant will be doing the maintenance/repair operations and therefore, at the end of each year, deposits the annual rent amount net of maintenance costs. Compute how much money will Peter have in his savings account upon his return (8 years from now) given that the proxy interest rate is 7% per year, compounded annually. (note: round your answer to the nearest cent, and do not include spaces, currency signs, plus or minus signs, or commas) 128,614.7 margin of error +/- 100
- Rookie Cookies wants to rent a new bakery space to operate their business at $10,000 a year for the next 5 years. The rent agreement specifies that a $4,000 security deposit needs to be paid by Rookie up-front. In year 4 of the rental agreement, a one-time machinery maintenance fee of $6,000 will need to be paid by Rookie. When the rental agreement expires, Rookie feels they cam sell the machinery they maintained during the rental agreement for $7,000. Assuming a 10% ra of return, what is the present value (or cost) of the bakery space rental decision? Present Value of a $1 Present Value of an Annuity of $1 Period 10% Period 10% 0.909 1 0.909 2 0.826 0.751 0.683 0.621 3 345 O-$50,355 O-$41,297 O-$41,661 O-$18,655 2 3 45 1.736 2.487 3.170 3.791Kayla Thompson is married and currently rents an apartment for $650 per month and paying $375 annually for renter's insurance. Her landlord required a $1,000 security deposit on the apartment. She just found a small townhouse she can buy for $285,000. She has enough cash for a $10,000 down payment and $4,100 in closing costs. Her bank is offering 30-year mortgages at a 6 percent annual rate. Kayla estimated the following costs as a percentage of the home's price: property taxes, 2.5 percent; homeowner's insurance, 0.5 percent; and maintenance, 0.7 percent. She is in the 25 percent tax bracket, has an after-tax rate of return on invested funds of 4 percent, and expects the townhouse to appreciate 3 percent per year. Using Worksheet 5.2, calculate the cost of each alternative and recommend the least costly option - rent or buy - for Kayla. Assume that Kayla uses the standard deduction of $24,000. Round the answers to the nearest dollar. Cost of renting: $ Cost of buying: $ Kayla…Amanda must decide to buy or lease a car that she has selected. She has negoiated a purchase price of $35,000 and can borrow money from her credit union by putting $3,000 down and paying $751.68 per month for 48 months at 6% APR. Alternatively, she could lease the car for 48 months at $495 per month by paying $3,000 capitalized cost reduction and a $350 dispostition fee on the car whic is project to have a residual value of $12,100 at the end of the lease. 1. What is the buying dollar cost? 2. What is the leasing dollar cost?
- Candace just accepted her first job paying a $48,000 salary and is planning to take a $5,000 vacation cruise throughout Europe for 2 weeks. She is debating whether to take the trip now and finance it with a promotion from the travel company offering no payments for a year at a monthly periodic rate of 1%, or wait the year and save to pay for the trip. If she takes the trip now she will start her career 2 weeks late. Approximately how much would she save by waiting a year and not taking her unpaid time from work to travel? $2,480. $634. $1,557. $600.9. Julie has a low credit rating, plus she was furloughed from her job 2 months ago. She has anew job starting next week and expects a salary to start again in a couple of weeks. Since sheis a little short on money to pay her rent, she decided to borrow $100 from a loan company,which will charge her only $10 interest if the $110 is paid no more than 1 week after the loanis made. What are the: (Draw the Cashflow)(a) nominal annual and(b) effective annual interest rates that she will pay on this loan?Three years ago, Marissa Moore started a business that creates and delivers holiday and birthday gift baskets to students at the local university. Marissa sells the baskets for $25 each, and her variable costs are $15 per basket. She incurs $12,000 in fixed costs each year. How many baskets will Marissa have to sell this year if she wants to earn $30,000 in operating income? (Round answer to 0 decimal places, e.g. 5,275.)