A gourmet ice cream store has fixed cost expenses
Question # 00464458
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Updated on: 01/17/2017 02:18 AM Due on: 01/17/2017
1. A gourmet ice cream store has fixed cost expenses (rent, utilities) of $100,000/year. The ice cream cost $5/liters to produce and sell for $7 per liter. The store sells around 150,000 liters of ice cream per year. If the gourmet ice cream store is going to operate for 5 years what is the payback period for an investment of 400,000 in the first year.
2. How much do you have to pay for a bond rate that pays 6% dividend compounded semiannually with a face value of 5,000 that is going to me paid (maturity) in 5 years. The buyer wants to have an interest rate profit of 8% compounded semiannually.
3. You just opened a savings account at a bank. You deposited 1,000 in the bank. The bank pays a simple interest at an annual rate of 6%. The second bank pays compound interest at an annual rate of 6% compounded monthly. How much more money you will have in the compounded interest savings account at the end of five years?
4. A machine is under consideration for a new manufacturing process. The interest rate is 10% compounded semianually. Compute the future worth of this alternative.
First cost = 70,000
Semiannual cost = 6,000
Semiannual income = 18,000
Salvage value = 9,000
Life in years = 5
5. Due to expanded growth in a certain portion of the city, a new waste truck capacity is needed. An additional truck can be purchased now to replace the presently owned assets. The city uses 5% interest rate for project evaluation. It is economically viable to buy the new waste truck?
Present value - 72,000
Annual cost - 12,500
Annual savings - 31,000
Salvage value - 7,200
Life in years - 10
6. What is the capitalized equivalent amount worth, at 8% annual interest compounded semiannually, for a present initial cost investment of 50,000 a series of semiannual positive disbursement of 5,000 that extent to infinity and in 12 years there is another disbursement of 25,000 that is going to be repeated every 12 years up to infinity?
2. How much do you have to pay for a bond rate that pays 6% dividend compounded semiannually with a face value of 5,000 that is going to me paid (maturity) in 5 years. The buyer wants to have an interest rate profit of 8% compounded semiannually.
3. You just opened a savings account at a bank. You deposited 1,000 in the bank. The bank pays a simple interest at an annual rate of 6%. The second bank pays compound interest at an annual rate of 6% compounded monthly. How much more money you will have in the compounded interest savings account at the end of five years?
4. A machine is under consideration for a new manufacturing process. The interest rate is 10% compounded semianually. Compute the future worth of this alternative.
First cost = 70,000
Semiannual cost = 6,000
Semiannual income = 18,000
Salvage value = 9,000
Life in years = 5
5. Due to expanded growth in a certain portion of the city, a new waste truck capacity is needed. An additional truck can be purchased now to replace the presently owned assets. The city uses 5% interest rate for project evaluation. It is economically viable to buy the new waste truck?
Present value - 72,000
Annual cost - 12,500
Annual savings - 31,000
Salvage value - 7,200
Life in years - 10
6. What is the capitalized equivalent amount worth, at 8% annual interest compounded semiannually, for a present initial cost investment of 50,000 a series of semiannual positive disbursement of 5,000 that extent to infinity and in 12 years there is another disbursement of 25,000 that is going to be repeated every 12 years up to infinity?
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Solution: A gourmet ice cream store has fixed cost expenses