The Allowable Business Investment Loss is __________ of the realized Business Investment Loss in a given year. Question 2 options: a) Same amount b) One-third
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The Allowable Business Investment Loss is __________ of the realized Business Investment Loss in a given year.
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- True or False 1. If an amortization schedule with A equal payments is done from 1 to n periods by paying at the end of every period,then at any point j between 1 to n, the value of the money left upon withdrawing the lump sum from 1 to j is A times[F/A, i%, n − j]. 2. The capitalized cost is generally the sum of first cost and all operating costs accumulated in one year.The capitalized Čost A of an asset is given by A= Ao t c(t) e-** dt %3D Where A is He onginal investment t is the time in years r3 the anneal interest rate Gn decimal form) compounded Coine ously, and A) is the annual Cast of mantenance Cin dollacs) a) Find the capitalized Cust of an asset for n=5 years when A = $ 140,000 c(t) = $ 12,000 t , T:.04. %3D Cost b) Find the capitalized cosp of an asset forever cit)= $12,000 t, r:.04. Ao = $ 140,000Balloons By Sunset (BBS) is considering the purchase of two new hot air balloons so that it can expand its desert sunset tours. Various information about the proposed investment follows: (Future Value of $1. Present Value of $1. Future Value Annuity of $1. Present Value Annuity of $1) (Use appropriate factor(s) from the tables provided.) Initial investnent (for tvo hot air balloons) Useful life Salvage value Annual net income generated BBS'a cost of capital $ 340,000 6 yeara $ 48,000 29,920 124 Assume straight line depreciation method is used. Required: Help BBS evaluate this project by calculating each of the following: 1. Accounting rate of return. (Round your answer to 2 decimal places.) 2. Payback period. (Round your answer to 2 decimal places.) 3. Net present value (NPV). (Do not round intermediate calculations. Negative amount should be indicated by a minus sign. Round the final answer to nearest whole dollar.) 4. Recalculate the NPV assuming BBS's cost of capital is 15 percent.…
- Question 1- A $12,000 investment will return annual benefit for six yearswith no salvage value at the end of six years. Assumestraight line depreciation and a 46% tax rate and the inflationrate is 5%. What is the inflation free after tax rate ofreturn on the investment if the annual benefits are $2,918 intoday’s dollars? a. 10.18% b. 4.94% c. 5% d. 8.20%Assume that at the beginning of the year, you purchase an investment for $2,500 that pays $67 annual income. Also assume that the investment's value has decreased to $2,350 at the end of the year. a. What is the rate of return for this investment? b. Is the rate of return a positive or a negative number? Complete this question by entering your answers in the tabs below. Req 1 Req 2 What is the rate of return for this investment? Note: Enter your answer as a percent rounded to 2 decimal places. Input the amount as a positive value. Rate of return % Req 1 Req 2 >What will be the total present value of an income flow starting with 1500TL/year in year 3 and ending in year 12 appreciating at a rate of 0.16, together with a lump sum income of 50 000TL to occur in year 15 if i:0.25? О а. less than 2000 TL O b. between 2001-4000 TL Oc. between 4001-6000 TL O d. between 6001-9000 TL O e. greater than 9001 TL
- Based on the following information, what is the company's Unlevered FCF for the period: EBIT of $500 mm, tax rate of 20%, Depreciation and Amort of $200 mm, Capex of $250 mm and an investment of $50 mm in Net Working Capital. a. $500 mm b. $300 mm c. $650 mm d. $225 mm Please answer fast i give you upvote.If the annual deposit into depletion reserve is $ 1000 and annual interest on capital investment is $ 125, then find annual net income- -- Select one: O a. $ 1125 b. $ 875 c. $ 1025 d. $ 975Depreciation The declining balance method is an account- ing method in which the amount of depreciation taken each year is a fixed percentage of the present value of the item. If y is the value of the item in a given year, the depreciation taken is ay for some depreciation rate a with 0< a < 1, and the new value is (1 – aly. (a) If the initial value of the item is yo, show that the value after n years of depreciation is (1 – a)"yo. (b) At the end of T years, the item has a salvage value of s dollars. The taxpayer wishes to choose a depreciation rate such that the value of the item after T years will equal the salvage value (see the figure). Show that a = 1-Vs/yo.
- For purposes of the property factor, leased property is generally valued at a. 10 times annual rentals. b. 8 times annual rentals. c. 5 times annual rentals. d. The fair market value of comparable assets. e. The present value of future rental payments.Select the correct answer (explain) In how long does a capital invested at 5% simple annual interest grow 24%? a.4.8 b.5.2 c.6 d.4.6Question (2): What is the capitalized worth, when = x1% per year, of 700 per year, starting now and continuing forever, and $10X2 in year five, repeating every four years thereafter, and continuing forever? X1=4% X2=700$
