Solution-What will annual profits for the store need to be

What will annual profits for the store need to be

Assignment Help Accounting Basics

Reference no: EM132650523

Rhonda has found a location for the next store she plans to open. The store front will require $30,000 in renovations before it is ready to open. She would like the initial investment to be paid off in 5 years.

Question 1: Assuming a discount rate of 4.5%, what will her annual profits for the store need to be if she wishes to recover the $30,000 in 5 years (assuming equal profits each year)?

Question 2: What if the discount rate increased to 7.75%? What would her annual profits need to be to recover the $30,000 in 5 years?

Reference no: EM132650523

Questions Cloud

What should consider when choosing which method to use : What should you consider when choosing which method to use? Give an example of a business and what method you would recommend they use and why.

What effect would the have on the carrying value : A company did not amortize the discount on it's long term bond investment. what effect would this have on the carrying value of the investment

Which concepts or principles of accounting is bill violating : Which concepts or principles of accounting is Bill violating? Bill Rogers has three different businesses. He has only one bank account for transactions

Compute the sample standard deviation : Compute the first and third quartiles and Compute the sample standard deviation - What is the median birth weight for mothers who gained 50 to 74 pounds

What will annual profits for the store need to be : Assuming a discount rate of 4.5%, what will her annual profits for the store need to be if she wishes to recover the $30,000 in 5 years

Purpose committee for crisis management planning crisis : Purpose Committee for crisis management planning Crisis types Structure of the Crisis Management Team Responsibility and control Implementation Plan

Who is responsible for the freight cost : Who is responsible for the freight cost when the terms are FOB destination? FIFO is the inventory costing method that follows the physical flow of the goods.

Penetration testing is simulated cyberattack : Penetration testing is a simulated cyberattack against a computer or network that checks for exploitable vulnerabilities.

Which two methods of accounting for uncollectible accounts : Which two methods of accounting for uncollectible accounts are the? direct write-off method and the allowance method. / allowance method and the accrual method

User Account

All Pages

What will annual profits for the store need to be

Reference no: EM132650523

Reference no: EM132650523

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT