The most desirable bundle of rights in time-sharing gives the buyer privileges to rent or sell the interest in the property. These rights are known as Livery of Seisin. Livery of Seisin refers to owning something and having the right to sell it. When a consumer owns a time-share, they have the rights to rent or sell the property during their allotted time during the year they have the property.
Answer:
a. What is the PI if the discount rate is 20%?
profitability index = present value of cash flows / initial outlay
PI = $9,137.41 / $5,000 = 1.83
b. What is the NPV if the discount rate is 20%?
NPV = -$5,000 + $9,137.41 = $4,137.41
c. What is the IRR if the discount rate is 20%?
the discount rate is irrelevant when you are calculating the IRR, since the IRR is the discussion rte at which the NPV = $0
IRR = 55.23%
Explanation:
Initial Outlay -$5,000
Year 1 $3,000
Year 2 $3,500
Year 3 $3,200
Year 4 $2,800
Year 5 $2,500.
<span>To find the compound interest of an investment you have to use this formula, A = P(1 + r/n)^nt, where A is the total amount you have after the investment period, P is the amount you invest or the amount you put in, r is the rate of the of the compound interest in this case 10%, n is the amount of time the interest will be compounded for example, 4 months a year(quarterly) or 6 months a year(semi annually), and t is the amount of time you invest in years.
So in this case you are going to substitute everything in the formula with their given value. So P = $700, r = 10%, n = 21 (because it is the number of months we invest for), and t = 2 years (because 21 months fit perfectly in 2 years, and t must always be in years). The resulting formula will be A = $700(1 + 0.1/21)^(21 x 2), which will give you an answer of $855 rounded to the nearest dollar.</span>
Answer:
1.3 million Impaired asset is the determined amount
Explanation:
Asset impaired as the estimated fair value cash flows is lower than book value
Impairment loss = Fair value - Book value
= 3.0 million - 4.3 million
= 1.3 million Impaired asset
An impaired asset is an asset that has a market value less than the value which was disclosed on the organisation balance sheet. When an asset is said to be impaired, it will need to be written down on the company's balance sheet to its current market value.
Answer:
a debt of $ 27,000 is left in the cash account = -27,000
Explanation:
because when you add all the nos the debts become <em>negative numbers </em>
and when we add them we get a debt of 27,000 which is equal to -27,000