Help please and can provide correct answer Computer Programmer $75/hourArchitect $8,000 flat feeAttorney$250/hour Bankers 2% of capital raisedTo expand your business, you hire a banker to raise$1 mm in order to finance a building designed by anarchitect. You also hire an attorney for 10 hours, anda computer programmer for 8 hours. What is thetotal cost for these services?A. $31,100B. $32,000C. $22,400D. $35,8002022 International Academy of Science. All Rights Reserved.HQ1H

Business: A business is an organization entirely made for earning profits or for fulfilling social…

Answered: Computer Programmer $75/hour Architect…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Parsa Real Estate Parsa Real Estate is a company that buys and rents real estate. The company is looking into buying an office building for $1M. The building has 10,000 square feet of rentable office space. The company analysts predict that they can rent the office space for $6 per square foot per month, but demand is a function of price in the following way: % Occupied = 2 - 0.2*Rent (Rent is in dollars per square foot per month. Also, at $6.00, Oscar thinks he can fill about 80% of the office space.) The building needs to be maintained (security, insurance, maintenance, etc.), which costs $10,000 per month regardless of occupancy. Also, there is a variable cost of $2 per month for each square foot occupied. Define the return on invested capital as the ratio of the profits (PER YEAR) and the invested capital. You can draw an ROIC tree in the same way that we drew a KPI tree in class. Simply have the ROIC as “the root” of the tree instead of profits. Then answer the following question.…
Parsa Real Estate Parsa Real Estate is a company that buys and rents real estate. The company is looking into buying an office building for $1M. The building has 10,000 square feet of rentable office space. The company analysts predict that they can rent the office space for $6 per square foot per month, but demand is a function of price in the following way: % Occupied = 2 - 0.2*Rent (Rent is in dollars per square foot per month. Also, at $6.00, Oscar thinks he can fill about 80% of the office space.) The building needs to be maintained (security, insurance, maintenance, etc.), which costs $10,000 per month regardless of occupancy. Also, there is a variable cost of $2 per month for each square foot occupied. A)What is the ROIC? (Please give your answer in decimal form. For example, 0.25 for 25%) B) What would be the new ROIC be if Parsa Real Estate decides to charge rent of $8.00 per square foot per month? (Please give your answer in decimal form. For example, 0.25 for 25%)
(Management Accounting) Mary is considering leaving her current position to open an ice cream shop. Mary's current annual salary is $77,000. Annual ice cream shop revenue and costs are estimated at $260,000 and $210,000, respectively. What is Mary's annual opportunity cost of starting the ice cream shop? A) $50,000 B) $77,000 C) $210,000 D) $260,000
I now have $24,000 in the bank earning interest of .75% per month. | need $34,000 to make a down payment on a house. | can save an additional $100 per month. How long will it take me to accumulate the $34,0007 (Do not round intermediate calculations. Round your answer t0 2 decimal places. Use a financial calculator or Excel.) Time required months
A business is considering purchasing a piece of new equipment for $200,000. The equipment will generate the following revenues: Year 1: $50,000 Year 2: $50,000 Year 3: $50,000 Year 4: $60,000 The machine can be sold at the end of the year four for $25,000. Assume a discount of 8%. Based on your above calculations, should they purchase the new piece of equipment? Why? 2. Carl and Melissa have monthly income of $6000. They want to buy a house for $200,000 and make a down payment of $40,000. The monthly payment on a 15-year mortgage will be $2,000 and a 30- year mortgage, the monthly payment will be $1,350. Which of the following would you recommend? Why? A. 15 year option B. 30 year option C. They cannot afford to buy a house at this point
Suppose you have a company that produces and sells shoes: The cost of producing 6,000 pairs of shoes is $81,500 and 16,000 pairs of shoes for $165,000. each pair produced can be sold for $21; There is a website where your shoes can be viewed. The traffic on website is a variable amount, and each view view generates $0.005; The employees are paid 15% of the profit function; The director wants monthly deposits to save $5,000,000 at 5.10% in 30 years; and Additional money is saved for your position for only the first month. You want to make $250,000 at 5.70% compounded continuously for 20 years.Leading Question: How would you represent the above situation? Suppose in the first month, you sold 10,000 pairs of shoes, and half a million views on the website. What is the first month's outcome? How does the second month's model differ from the first month? Suppose for the second month, you had zero views on the website. Find how many shoes are needed to break even for the second month's…
You are currently in a job as a chef in a restaurant earning $100,000 per year. You are considering opening up a restaurant in a building which you currently own. You estimate that, if you wanted to, you could rent out your building for $25,000 per year to another restaurant. Last year, your revenues and expenses from the restaurant were the following: Revenues $400,000Cost of Food $120,000Salaries/Wages $100,000Utilities $25,000Taxes $20,000 What is your accounting profit? Show your calculations What is your economic profit? Show your calculations Assuming that you are indifferent between being a chef or owning a restaurant, should you open up your restaurant? Explain why. Now suppose that instead of owning the building where your restaurant will be located, you had to pay rent of $25,000 per year for the building. Will your answers to parts 1-3 change? Show your calculations. Explain how and why your answers will change or…
Corporate Finance A pharmaceutical Startup has an annual cost of capital of 12% (compounded monthly) andgoes through two stages to develop a drug.Stage 1: At End of Month 0 (“EOM0”), the Startup has no employees, and has to decide whether toinvest $10mm and hire 5 employees (who will conduct research). (Employees receive $9,000monthly salary, paid at the end of each month that they work, so they begin receiving salariesstarting at EOM1.If the startup decided to invest at EOM0 and hired employees, then:Stage 2: at EOM24, after knowing whether the Startup is in State A, B or C , the Startup has to decidewhether to invest $35mm at EOM24 and add 40 employees (for a total of 45) OR to shut down. Ifthe Startup decides to shut down, then existing employees will be fired “with 6 months notice” i.e.they will receive 6 more months of salary (i.e. at EOM25, EOM26, … EOM30). Note that: at EOM0the startup believed that at EOM24 there would be:95% prob of State A: the startup thinks that at EOM48…
You have a lawn mowing business. You plan to work 250 hours per month and charge your customers $22 per hour. Your anticipated costs include: Advertising $25 per month Gas $1.50 per hour Depreciation on mowers $25 per month Assistant's Wages $7.00 per hour Miscellaneous Expenses $50 per month You plan on paying 60% of your monthly costs in the month incurred, 30% in the second month and the remainder in the following month. Calculate the amount of cash payments for operating activities in your second month of business.
ASAP 1)Claire wants to start her own dog treat business. She can purchase a suitable factory for $250,000. Claire currently has $135,000 in the bank earning 6 percent interest per year. Suppose Claire purchases the factory using her own money and then borrows the rest from the bank at 6%. Claire also has to pay other costs of running her business in the amount of $15420 per month. These costs include paying for energy, heat and salary and benefits to workers. (The value of the business is not considered a cost. The business is an asset that retains its value and can be sold if the owner wishes.) a. What is Claire’s annual implicit cost of purchasing the factory? b. What is Claire’s annual explicit cost of purchasing the factory? c. If Claire brings in annual total revenue of $300,000 what is her annual economic profit?
Suppose you have a company that produces and sells shoes: The cost of producing 6,000 pairs of shoes is $81,500 and 16,000 pairs of shoes for $165,000. each pair produced can be sold for $21; There is a website where your shoes can be viewed. The traffic on the website is a variable amount, and each view generates $0.005; The employees are paid 15% of the profit function; The director wants monthly deposits to save $5,000,000 at 5.10% in 30 years; and Additional money is saved for your position for only the first month. You want to make $250,000 at 5.70% compounded continuously for 20 years.Leading Question: How would you represent the above situation? Suppose in the first month, you sold 10,000 pairs of shoes and half a million views on the website. What is the first month's outcome? How does the second month's model differ from the first month?
A young engineer’s starting salary is $52,000. The engineer expects annual raises of 3%. The engineer will deposit 10% of the annual salary at the end of each year in a savings account that earns 4%. How much will the engineer have saved for starting a business after 15 years? We suggest that the spreadsheet include at least columns for the year, the year’s salary, the year’s deposit, and the year’s cumulative savings.

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