Rent is $39/sq ft and increases by CPI index 3% each year thereafter. Operating expenses are $20/sq ft, increasing by $1/year. What is the effective rent?
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Chapter 9 Discussion Q2
- Rent is $39/sq ft and increases by CPI index 3% each year thereafter. Operating expenses are $20/sq ft, increasing by $1/year. What is the effective rent?
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- Hh1. Account What nominal rate per week is equivalent to an effective rate of 10.5% per year, compounded continuously?1. Rent is $40.00 per rentable square foot per year. Operating expenses are $20 during the first year and will increase by $1 every year. Assume a 5-year window and a 10 percent discount rate, what is the effective rent?Problem 12 (DSO and Accounts Receivable) James Inc. currently has P750,000 in accounts receivable, and its day sales outstanding (DSO) is 55 days. It wants to reduce its DSO to 35 days by pressuring more of its customers to pay their bills on time. If this policy is adopted, the company's average sales will fall by 15%. What will be the level of accounts receivable following the change? Assume a 365-day year.
- Question 11 options: Answer the following, in the blank provided using the specified format. (For example: 40 days) A company's current revenue is $10,000,000 and accounts receivable are now $1,000,000. The sales manager estimates that sales should increase by 10% during the following year. The accounts receivable manager estimates that the new level of accounts receivable will remain unchanged. The companies current average collection period is ____.5% APR compounded monthly. The annual growth factor is 1.0515806944291164. find the APY 3.2% APR compounded daily. the annual growth factor is 1.032929088998272. find the APYCompoundin g Amount invested today 238,000 Annual rate of return 8.3% Years until maturity 21 You are thinking about retirement, and would like to compute how much you will have some time in the future. Using the data from above, please compute future amounts, and then answer these questions: #1 How much MORE will you have if compounding is monthly rather than annually? #2 How much MORE will you have if compounding is daily rather than monthly? A Between 4,000 and 10,000 B Between 10,000 and 12,000 C Between 12,000 and 14,000 D…
- Problem A DEF has total forecasted gross purchases of P4,500,000 relating to a major supplier for the coming year. The supplier is offering a credit term of 3/15, n/45. How much is the simple annual effective cost of paying on the 45th day? Problem B ABC can take a 45-day loan with a 15% interest deducted in advance, to be reapplied each time. How much is the simple annual cost of the loan? Problem C ABC’s bank offered a loan with conditions of a P5,000,000 face amount, 6-month term, 4% interest deducted in advance and bank charge of P30,000. How much is the compounded annual effective cost of the bank loan?not use of excel.only use formula to solve. Q)For an income of $4,500 per month for the past five years, what is the present worth of the income at an interest rate of 15% per year, compounded monthly? $270,000 $543,078 $398,585 $298,48515. A company is considering increasing the period of credit allowed to customers from 30 days to 45 days. Annual sales are currently £1,200,000, and annual profits are £100,000. It is anticipated that allowing extended credit would increase sales by 15%, while net profit margins would be unchanged. The working capital is financed by using an overdraft costing 10% per annum. Assume that there is no change in the absolute level of the inventory or account payable. What is the financial effect of the proposal (assume a year is 360 days)? A Reduction in profit of £10,000 B Increase in profit of £10,000 C Increase in profit of £15,000 D Increase in profit of £7,750
- Selling price per unit =$50. Variable expense ratio =40%. Fixed expenses per month =$30,000. The breakeven point in total revenueis?Question 1 The table below provides a firm’s projected sales for the year 2022. About 35% of a month’s sales is collected in the same month whereas the remainder is collected in the next month. Purchases are 70% of sales and are made a month before the sales month. The firm’s average payment period (APP) is 21 days. Assume there are 30 days in a month Feb, 2022 Mar, 2022 Apr, 2022 Sales (RM) 52,000 55,000 54,000 (a) What is the total amount of sales collection in March 2022? b) What is the total amount of purchase disbursement in March 2022? Question 2 Say your firm needs short-term financing. Your firm’s bank offers a reasonable sum of loan for a term of one year at the interest rate of 8% per annum. You are considering if you should factor your receivables instead. Your firm’s sales in the coming year is expected to be RM3 million, and the average collection period is estimated to be 73 days. A factor offers a discount rate of 2% for the…Average Return The past five monthly returns for K and Company are 5.15 percent, 5.03 percent, -1.15 percent, 4.15 percent, and 8.15 percent. What is the average monthly return?
