Jowel Smithers and Sonda Richards merged all of their financial resources and opened a mobile phone sales and repair business in the upscale Domain Mall in Los Angeles 10 years ago with an initial investment of $2.5 million. As revenues increased significantly over the first 4 years, they took out salaries that totaled $500,000 each year for the two of them. With increased success, they decided to pay themselves a total of $1.7 million each year from years 5 through 10. They hoped at the initiation of the joint business venture to make 10% per year on the investment in terms of salaries. (a) Determine the equivalent future worth after 10 years of the salaries. (b) If they had been satisfied with a $5 million future worth, calculate the size that the initial investment could have been instead of the $2.5 million, provided they had the funds available.

Mrs Galicia gave her sisters $3000 each to invest. The investment will last 8 years. The table shows what each sister did with their investment and how it changed over 8 years. Use the chart to answer the following questions please 1. What is the balance of Michelle's $3000 after 8 years? 2. What is the balance of Kristen's $3000 after 8 years? 3. What is the balance of Gabriella's $3000 after 8 years? 4. What is the balance of Judy's $3000 after 8 years? 5. Who has the most money at the end of the 8 years? If i were to choose one of the options to use for my own money, which option should I choose?

A8) Gerry is considering buying a small business that makes t-shirts. He plans on running the business for 17 years before selling it. He expects to make $25,506 each semiannual period for the 17 years that he owns the business with his first $25,506 realized at the end of the first semiannual period. He has also contracted with 3 large events to make t-shirts that will generate cash flows of $17,639, $22,850, and $11,555 in 3 years, 9 years and 13 years respectively. At the end of year 17 he plans to sell the business of $186,090 after collecting the $25,506 in annual revenue. How much should he pay for the business if the interest rate is currently 13.63%

Your parents have accumulated a $120,000 nest egg. They have been planning to use this money to pay college costs to be incurred by you and your sister, Courtney. However, Courtney has decided to forgo college and start a nail salon. Your parents are giving Courtney $15,000 to help her get started, and they have decided to take year-end vacations costing $10,000 per year for the next four years. How much money will your parents have at the end of four years to help you with graduate school? You plan to work on a master's and perhaps a PhD. If graduate school costs $26,353 per year, approximately how long will you be able to stay in school based on these funds? Use 9 percent as the appropriate interest rate throughout this problem. Round all values to whole numbers. Refer to this information to solve the rest of the questions. What are the funds available after the Nail Salon? ○ $100,000 ○ $105,000 ○ $72,000 $98,500 What is the Present Value of the vacations? $32,397 $37,900 $45,000…

Bubbles LLC is a web design company that operates out of Boulder, Colorado. Mark and Jeff started Bubbles twenty years ago and it has grown to be one of the more sizeable web development firms in Colorado. Bubbles offers a 401(k)/profit sharing plan. The plan has the following characteristics: Eligibility: age 21 and one-year of service Match: dollar for dollar match Vesting: 20% per year (years 1 through 5) Highly compensated definition: uses top 20% election Profit-sharing contribution: Bubbles generally makes a sizeable contribution, but the percentage varies. The plan has been amended to permit in-plan Roth rollovers. The plan permits rollovers from other qualified plans and IRAs EE# Employee Ownership Age Tenure Salary Deferral 1 Mark 60% 48 20 Years $200,000 $10,000 2 Jeff 30% 49 20 Years $150,000 $15,000 3 Chad 6% 33 15 Years $75,000 $5,250 4 Josh 4% 42 10 Years $85,000 $5,100 5…

Bubbles LLC is a web design company that operates out of Boulder, Colorado. Mark and Jeff started Bubbles twenty years ago and it has grown to be one of the more sizeable web development firms in Colorado. Bubbles offers a 401(k)/profit sharing plan. The plan has the following characteristics: Eligibility: age 21 and one-year of service Match: dollar for dollar match Vesting: 20% per year (years 1 through 9) Highly compensated definition: uses top 20% election Profit-sharing contribution: Bubbles generally makes a sizeable contribution, but the percentage varies. The plan permits rollovers from other qualified plans and IRA EE# Employee Ownership Age Tenure Salary Deferral 1 Mark 60% 48 20 Years $200,000 $10,000 2 Jeff 30% 49 20 Years $150,000 $15,000 3 Chad 6% 33 15 Years $75,000 $5,250 4 Josh 4% 42 10 Years $85,000 $5,100 5 Alex 0% 58 8 Years $60,000 $0 6 Shay 0% 29…

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William and Miller Brown run a real estate brokerage firm. They have just moved into a new building and want to add some outdoor digital signage to advertise the firm's services. The sign they are considering has two display areas that can display two different images at the same time and costs $104,800. It is expected to have a useful life of 4 years. In an effort to recoup the cost of the sign, William and Miller will rent one display panel to other tenants in the building for $39,646 a year. Electricity to power the sign is expected to be $870 per year. (a) Calculate the annual net operating income generated by the new sign. Annual net operating income 2$ eTextbook and Media

Lynn Swartz's husband died 3 years ago. Her parents, who have income of over $200,000 per year, want to ensure that funds will be available for the education of Lynn's eight-year-old son, Eric. Lynn is currently earning $45,000 a year. Lynn's parents have suggested that they start a savings account for Eric. They have calculated that if they invest $4,000 per year for the next 8 years, sufficient funds will be available at the end of 10 years for Eric's college expenses. Lynn realizes that the tax treatment of the investments could significantly affect the amount of funds available for Eric's education. Complete the letter advising her about options available to her parents and to her for Eric's college education. SWFT, LLP 5191 Natorp Boulevard Mason, OH 45040 September 7, 2021 Ms. Lynn Swartz 100 Myrtle Cove Fairfield, CT 06824 Dear Lynn: You asked me to consider the tax-favored options for accumulating the funds for Eric's college education. An added complication (and opportunity…

Bruce is considering the purchase of a restaurant named Hard Rock Hollywood. The restaurant is listed for sale at $1,030,000. With the help of his accountant, Bruce projects the net cash flows (cash inflows less cash outflows) from the restaurant to be the following amounts over the next 10 years:     Years Amount   1-6 $ 83,000   (each year) 7   93,000     8   103,000     9   113,000     10   123,000         Bruce expects to sell the restaurant after 10 years for an estimated $1,130,000. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Round your answer to 2 decimal places.)Required:1-a. Calculate the total present value of the net cash flows if Bruce wants to make at least 10% annually on his investment. (Assume all cash flows occur at the end of each year.)       1-b. Should he purchase the restaurant?