They expect that the extra tables will add between $2,000 and $5,000 to the restaurant’s monthly revenue. The bank is willing to let the business have an intermediate-term loan of $50,000 for five years, at an interest rate of 6.5 percent. Calculate the monthly payment, and explain whether taking this loan is a smart business decision.
The plan is amended by the company, a move which causes a decrease in the projected benefit obligation. 23. The Aberdeen Company maintains a defined benefit pension plan for its employees. On January 1, Year Four, this pension plan is amended so that employees can retire at the age of 64 rather than 65. As a result of this decision, the projected benefit obligation on that date increases by $2 million.
He negotiated a new lease on the warehouse with his landlord; the lease has a term of 5 years with two options to renew each for an additional 5 years. The lease period commenced on March 14, 2013. Cost of the leasehold improvements was $88,000. The cost of leasehold improvements is included in class 13. The capital cost is amortized over the initial lease term plus the first option period under Schedule III.
Name:_______________ Part I Open-ended question (10 points; 20% of exam) ID:____________ For Quick Start the first month in business has ended. In the last days of December 2005, they already received contributed capital of € 6,000 and they obtained a five-year bank loan of € 24,000 at an annual rate of interest of 10 percent. Interest has to be paid each year on October 31. On December 31, 2005 various store equipment was purchased at a total cost of € 12,000, paid in cash. It is expected that the equipment has to be replaced after five years.
We will put down $3000 each and the rest will be donations from friends and family. Our fixed assets are for continuing use, which is, office space, airline discounts and other fixed assets like office equipments and accessories and utility bills like electricity. Our variable costs will change because of the different activities of the business dealing with labor and advertising. Below we have our cash flow projection for the next five years. We estimated how many customers we need to breakeven each year.
24. Jayadev Athreya has started his first job. He will invest $5,000 at the end of each year for the next 45 years in a fund that will earn a return of 10 percent. How much will Jayadev have at the end of 45 years? • $2,667,904 • $5,233,442 • $1,745,600 • $3,594,524 25.
First Round Capital proposed to invest $50,000 of equity capital into DLK, but on the condition that the investment firm be granted the right to elect five members to DLK’s board of directors. Discouraged by the “high cost” of external borrowing, Lacey decides to approach Kaylee and Doug. Lacey suggests to Kaylee and Doug that each of the three original investors contribute an additional $25,000 to DLK in exchange for five 20-year debentures. The debentures will be unsecured and subordinate to ACME’s debt. Annual interest on the debentures will accrue at a floating 5% premium over the prime rate.
• Kingsford is the market leader in charcoal, controlling 57% of the market share across the category in 2000. • 60% of customers believe Kingsford charcoal is a better quality product than Royal Oaks and private label brands. • Kingsford has cultivated long standing relationship with a variety of retailers from small to large channel partners. • Kingsford has developed detailed quantitative models from each local market’s scanner. This aided Kingsford to coach the local store managers on best practices in there market to maximize sales.
In order to build a customer base, Teddy Bear Childcare will charge low prices. For example, for new porn we will charge $3 per hour, children 2-4 years $2.5 per hour, and children 4-8 years $1.5 per hour. By taking the average Teddy Bear Childcare will charge$ 72.5 hourly, 725 daily, and 21,750 monthly. Sales strategy: Teddy Bear Childcare will make a significant profit through the excellent care of children, and the availability during weekend. We will be the only center that offers this service in the shopping mall.
Since 1984, the first for-profit prison was contracted the industry had grown exponentially. As it states in the text, "private facilities appear to perform at the same level of efficiency as public facilities, and mimics the public model but achieves modest cost savings" (Foster, 2006). Advocates argue with the corrections that they could save the public ten to twenty percent in operation costs of jails and prisons with privatization. Privatizations provide nonprofit places such as halfway houses, drug and alcohol treatments, and charitable organizations. These are places that are contracted companies with the jails and prisons because they are either short term or facilities don't provide the services.