six months ago, you purchased a tract of land in an area where a new industrial park was rumored to be planned. this land cost you $110,000, and the seller offered you an interest-free loan for 70 percent of the land cost. today, the industrial park project was formally announced, and an attorney for the developer has just offered you $200,000 for your land. if you accept this offer, what will be your holding period return on this investment? round your answers to two decimal places.
Answers
The holding period return on this investment is 5.06, or 506% when expressed as a percentage.
To calculate the holding period return on the investment, we need to consider the initial investment, any additional costs or fees, and the final selling price. Here's how we can calculate the holding period return:
Initial Investment:
The land cost $110,000, and you obtained an interest-free loan for 70% of the land cost. Therefore, the amount you invested initially is 30% of $110,000, which is $33,000 (0.30 * $110,000).
Additional Costs:
If there were any additional costs or fees associated with the purchase of the land, such as closing costs or legal fees, they should be considered. For the purpose of this calculation, let's assume there were no additional costs.
Final Selling Price:
The attorney for the developer has offered you $200,000 for the land.
Now, we can calculate the holding period return using the formula:
Holding Period Return = (Final Selling Price - Initial Investment) / Initial Investment
Holding Period Return = ($200,000 - $33,000) / $33,000
Holding Period Return = $167,000 / $33,000
Holding Period Return = 5.06
This means that the investment has generated a return of 506% over the holding period of six months. It indicates a substantial gain relative to the initial investment. However, it's important to note that this calculation does not take into account any ongoing costs, taxes, or other factors that might affect the overall return on the investment.
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Related Questions
Producing a bill of materials is a business process in which of the following functional areas? Group of answer choices Manufacturing and production Finance and accounting Sales and marketing Research and development Human resources
Answers
Producing a bill of materials is a business process in the functional area known as A. Manufacturing and production.
What is production?It should be noted that production simply means the creation of a particular good that can be used by the consumers.
In this case, producing a bill of materials is a business process in the functional area known as manufacturing and production.
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true or false liberal democrats advocate for a free market economy.
Answers
False. Liberal democrats advocate for a free market economy.
Liberals considered free market economy to be a chance for industrialist business visionaries to succeed.
The free market economy is a monetary framework in light of organic market with practically no administration control. It is an outline depiction of all willful trades that occur in a given financial climate. Unregulated economies are described by an unconstrained and decentralized request of plans through which people pursue financial choices.
In light of its political and legitimate standards, a nation's unrestricted economy might go between extremely huge or completely unlawful. The expression "unregulated economy" is once in a while utilized as an equivalent for free enterprise. At the point when a great many people examine the "unrestricted economy," they mean an economy with unhampered contest and just confidential exchanges among purchasers and dealers. Nonetheless, a more comprehensive definition ought to incorporate any intentional financial action inasmuch as it isn't constrained by coercive focal specialists
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A refusal by a lawyer to furnish information related to litigation included in the letter of inquiry is likely to result in?
Answers
Qualification of the audit report.
A refusal by a lawyer to furnish information related to litigation included in the letter of inquiry is likely to result in Qualification of the audit report.
What is Qualification of the audit report?When the scope of the auditor's job is limited or when there is a difference of opinion with management on the application, acceptability, or sufficiency of accounting policies, the auditor's report is qualified. For auditors, a report must qualify an issue as material or as economically worthwhile.What is an audit report with qualified opinion?An auditor's qualified opinion states that, with the exception of a particular area, the financials are fairly reported. A qualified opinion is typically still acceptable to lenders, creditors, and investors, unlike an unfavorable or disclaimer of opinion.What exactly is qualified reporting?An audit report that has qualifications is one that is not error-free. The auditor may qualify his report if he has any concerns about particular processes indicated in the financial statements.
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In the securities markets, capital gains take place when
A) the value of the Dow Jones Industrial Average appreciates.
B) a security sells for more than the original purchase price.
C) additional investors buy stock in an existing corporation.
D) stockholders profit from the firm's use of leverage.
Answers
In the securities markets, capital gains take place when the value of the Dow Jones Industrial Average appreciates.
What is capital gains?
Capital gains is when the value of a security appreciates. This means that the purchase of the security is less than the current value of the of the security. Capital gains are not realised until the security is sold.
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The table below gives information extracted from the annual accounts of Make-it (Pty) Ltd for the past two years. Make-it (Pty) Ltd : Extracts from year-end accounts: Stocks: Raw materials Work-in- progress Finished goods Purchases Cost of goods sold Sales Debtors Trade creditors Year 1 R'000 276 186 285 1 440 2 196 2 376 594 252 Year 2 R'000 291 194 259 1 404 1 944 2 160 562 210 You are required to: Answer the following questions: a) Calculate the length of the working capital cycle for years 1 and 2 assuming 365 days in the year and using end of year working capital balances, not averages.
Answers
The length of the working capital cycle for year 1 is approximately 75.16 days, and for year 2 it is approximately 102.94 days. To calculate the length of the working capital cycle for years 1 and 2, we need to consider the components involved: stocks, debtors, and trade creditors. The formula to calculate the working capital cycle is:
Working Capital Cycle = Days of Inventory + Days of Receivables - Days of Payables
We will calculate each component separately and then subtract the days of payables from the sum of days of inventory and days of receivables.
Let's calculate the working capital cycle for years 1 and 2 using the given information:
Year 1: Days of Inventory = (Stocks / Cost of Goods Sold) * 365
= ((276 + 186 + 285) / 2,196) * 365
= 47.04 days
Days of Receivables = (Debtors / Sales) * 365
= (594 / 2,376) * 365
= 91.87 days
Days of Payables = (Trade Creditors / Purchases) * 365
= (252 / 1,440) * 365
= 63.75 days
Working Capital Cycle (Year 1) = Days of Inventory + Days of Receivables - Days of Payables
= 47.04 + 91.87 - 63.75
= 75.16 days
Year 2: Days of Inventory = (Stocks / Cost of Goods Sold) * 365
= ((291 + 194 + 259) / 1,944) * 365
= 62.79 days
Days of Receivables = (Debtors / Sales) * 365
= (562 / 2,160) * 365
= 95.21 days
Days of Payables = (Trade Creditors / Purchases) * 365
= (210 / 1,404) * 365
= 55.06 days
Working Capital Cycle (Year 2) = Days of Inventory + Days of Receivables - Days of Payables
= 62.79 + 95.21 - 55.06
= 102.94 days
Therefore, the length of the working capital cycle for year 1 is approximately 75.16 days, and for year 2 it is approximately 102.94 days.
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3. What's considered a retail service?
A. Car engine repair
B. Car wash
C. New car
D. New car tires
Answers
The correct option is D. New car tires.
New-car tires are considered a retail service.
What are examples of retail?Retail businesses sell items or services to customers for their consumption, use, or pleasure. They typically sell items and services in-store but some items may be sold online or over the phone and then shipped to the customer. Examples of retail businesses include clothing, drug, grocery, and convenience stores.
What is retail customer service?Retail customer service is like any other customer service: it's the act of providing customers with assistance, answering their questions and helping them solve problems. However, there are some factors specific to this industry that make it important to learn and hone retail customer service skills.
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How important is money
Answers
Answer:
very important
Explanation:
money is a global income source for everyone. we all have different types but it is all still money. now say one country got rid of money and had people pay for stuff using other things. if china did that lots of different countries wouldn't be able to get stuff from there unless they had so much of that product they could just give it up.
Which currencies are involved in causing favorable or unfavorable exchange rate?
Answers
There are several factors that can cause a currency to have a favorable or unfavorable exchange rate. One key factor is the strength of a country's economy and its level of political stability.
Currencies of countries with stable economies and political environments tend to have favorable exchange rates, while those of countries with weaker economies and political instability tend to have unfavorable exchange rates. Additionally, interest rates and inflation can also impact exchange rates. Higher interest rates and lower inflation rates tend to make a currency more attractive to investors, leading to a stronger exchange rate. On the other hand, low interest rates and high inflation rates can make a currency less attractive, leading to a weaker exchange rate. Ultimately, the currencies involved in causing favorable or unfavorable exchange rates depend on a variety of economic and political factors specific to each country and its currency.
Hello! Exchange rates can be favorable or unfavorable depending on the relative value of the involved currencies. These rates fluctuate due to various factors such as economic conditions, interest rates, and political stability. Some major currencies that can influence exchange rates include the US Dollar (USD), Euro (EUR), British Pound (GBP), Japanese Yen (JPY), and Chinese Yuan (CNY).
A favorable exchange rate occurs when one currency appreciates or strengthens against another, making it more valuable. For example, if the USD strengthens against the EUR, an American tourist traveling to Europe will get more Euros for their Dollars. This situation is favorable for the traveler as they can buy more goods and services with the same amount of money.
On the other hand, an unfavorable exchange rate happens when one currency depreciates or weakens against another. In the same example, if the EUR strengthens against the USD, the American traveler will get fewer Euros for their Dollars, making their trip more expensive.
In conclusion, exchange rates can be favorable or unfavorable depending on the involved currencies and their relative value at a given time. Factors influencing these rates include economic conditions, interest rates, and political stability, making it important to monitor these factors to take advantage of favorable rates when possible.
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Glenda runs a flower delivery service with six people. Quite recently, the business has started suffering and there has been an increase in the
number of customer complaints. Glenda wants to find out the reasons and possible solutions. What technique can she use to seek support from
her employees regarding the issue?
A
Glenda can talk to each employee in private.
B. Employees can brainstorm to find causes and possible solutions.
C. Employees can step up and include additional hours of work each day.
D. Glenda can reach out to a consultant and seek professional help.
Answers
Answer:
Glenda can reach out to a consultant and seek professional help.
Explanation:
What of the following forms the basis for a financial advantage when making a business decision?multiple choiceWhether opportunity costs are presentWhether irrelevant costs and benefits ariseWhether the dfferential benefits exceed the differential costsWhether alternatives exist
Answers
Answer: whether the differential benefits exceed the differential costs
Explanation:
Gross Domestic Product or GDP can be
a)Value of output of goods and services during one year
b) National Income
c)National Output
d)Aggregate Demand
e)All the stuff made by one country in one year
f)All of the above or any of the above
Answers
Answer:
f)All of the above or any of the above
Explanation:
GDP or gross domestic product is the aggregate of the values of goods and services produced within a country's boundaries. In calculating the value of GDP, economists consider the value of finished goods only.
GDP is calculated using the expenditure approach and the income approach. With the expenditure approach, GDP is the sum of all consumers, government, incomes, and net imports. The result is GDP and also the aggregate demand.
In the income approach, the GDP is the sum of all national incomes . In other words, GDP is equal to Sales Taxes plus Depreciation and Net Foreign Factor Income.
Advise the team leader on the activities that should take place during the
performing stage.
Answers
Answer is this.I think this is helpful
write a paragraph (5-7 sentences) that explains what circular invention you think is the most important
Answers
Answer:
The wheel is considered to be man's greatest invention
Explanation:
And the printing press
Which situations best demonstrate likely tasks for Business Financial Management workers? Check all that apply.
Marcy helps a family create a budget that allows them to save up for buying a house.
Caleb researches possible cases of fraud and takes notes on what he finds out.
Selena processes customer transactions at a bank.
Jung creates a report with charts to show how a company's money is being spent.
Owen sells automobile insurance policies to people.
Alonzo advises companies about investment strategies.
Answers
Answer:
its
b, the caleb one
d, the jung one
d, the Alonzo one
Caleb investigates potential fraud situations and makes notes on his findings. In order to show how a company's money is being spent, Jung develops a report using charts. show potential tasks for those working in business financial management. Thus option (B, C) is correct.
What is management?In order to achieve desired goals and objectives, a person or group of people must be challenged and managed, according to the concept of management. Furthermore, the capacity to organize, supervise, and guide people is a component of management.
Managing telephone costs, employing new employees, purchasing facilities, creating project budgets, etc. are a few examples of financial management for a corporation or firm. financial administration
Therefore, Thus, option (C) is correct.
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You've been asked to be the speaker for a 1-hour presentation at a large conference. The conference committee scheduled your presentation in a ballroom with a capacity of 500 people. You've been told approximately 465 people have enrolled in your session.
What environmental factor must you consider that could impact your message? (select the best answer)
Bad weather
Audio equipment
How many people attend your presentation
The traffic getting to the conference center
Answers
The traffic getting to the conference centre is the environmental factor must you consider that could impact your message. Hence, option D is correct.
What is environmental factor?In relation to genetics, environmental influences include things like pesticides or industrial waste we are exposed to where we live or work, unhealthy lifestyle choices like smoking or eating poorly, and stressful events.
Environmental elements include things like air, water, climate, soil, natural vegetation, and landforms. By definition, environmental factors have an impact on daily life and are a significant contributor to disparities in health between regions.
Thus, option D is correct.
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Drag each option to the correct location.
Match the scenarios to the factors that affect the labor market.
foreign direct investment
outsourcing
immigration
Answers
Each scenario should be matched to the factors that affect the labor market as follows:
Immigration: Carlos is moving from Mexico to the United States because he got a job in a bank. He had his interview last month, and the bank agreed to hire him because he was willing to work for 10% less than most American workers, even though he has the same qualifications.Foreign direct investment: A US supermarket chain is going to open a few supermarkets in Europe because a recent survey showed that the chain has a huge potential for profits in Europe.Outsourcing: A renowned US information technology firm has recently signed a contract with a company based in the Philippines. The Filipino company will handle the accounts of the US firm. The US firm made this decision to reduce labor costs.What is immigration?Immigration can be defined as the movement of a group of people from one geographical region to another geographical destination such as a city, especially in search of any of the following:
Good governanceSecurityBetter living conditions.WorkJobsSocial amenitiesWhat is a foreign direct investment?A foreign direct investment (FDI) simply refers to a type of investment which is made by an individual or business organization (investor) into an investment market that is located in another country.
In conclusion, an example of foreign direct investment (FDI) is a US supermarket chain that is planning to open a few supermarkets in a country in Europe.
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Answer:
Post Test: Free Market and Businesses
Unit: 2
Economics
Question #12
__________________________________________________________
This is 100% right because I took the test
Go to explanation for picture with answers
l
l
∨
Explanation:
Here's the picture and I hope this helped!
Have a nice day!
I need suggestions and opinions on this first draft, please.
Answers
Answer:
It looks amazing! Great job!
To calculate the number of montly payments required to pay off a loan or meet an investment goal, use the _______ function.
Answers
To calculate the number of monthly payments required to pay off a loan or meet an investment goal, use the nper function.
In finance, lending is the lending of money by one or more individuals, organizations, or other entities to other individuals and organizations, etc. The beneficiary incurs a debt and usually has to pay interest on that debt until that debt is also repaid. to repay the principal borrowed.
The promissory note will typically state, among other things, the principal amount of the loan, the interest rate charged by the lender, and the date of repayment. A loan involves reallocation of assets in question over a period of time, between the lender and the borrower.
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which statement best illustrates the history of the fractional banking system?
Answers
Answer:
A goldsmith accepts deposits of gold and issues paper receipts in excess of the amount of gold held; reserves are a fraction of the money supply.
Explanation:
as a good student ,what advice would you say to them
Answers
Answer:do ur work and try hard
Explanation:to get good grades
Answer:
-dont punish yourself because of your mistakes (mistakes help you learn)
-dont procrasinate, use your time wisely
-study for atleast 10 min everyday
-pay attention during class
-take notes
-give yourself breaks every once in a while
-love yourself
Explanation:
which conditional formatting rule is best suited to highlight sales value greater than $5,000?
Answers
The conditional formatting rule that can be used in highlighting sales value than more than $5000 as regards this question is greater than.
Conditional formatting can be regarded as feature in spreadsheet applications , which helps when there is a need to apply specific formatting to cells that meet certain criteria. In the case, of formatting rule for figures greater than $5,000, the the Greater Than sign is used to achieve this.The greater-than sign is helps in denoting an inequality between two valuesOther uses of formatting rule are to :highlightEmphasizedifferentiate among data as well as information stored in a spreadsheet
Therefore, conditional format helps in changing the appearance of cells
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Do you think NAFTA should adopt a common currency? Why or why not?
Answers
Answer:
Explanation:
I don't have a personal opinion, but I can provide some information that may be helpful in answering your question.
The North American Free Trade Agreement (NAFTA) is a trade agreement between the United States, Canada, and Mexico that was signed in 1994. While NAFTA has helped to increase trade between the three countries, it does not include provisions for a common currency.
There are arguments for and against the adoption of a common currency among the NAFTA countries. Proponents argue that a common currency could help to facilitate trade and investment between the three countries, reduce transaction costs, and increase economic integration. It could also help to stabilize exchange rates and reduce the risk of currency fluctuations.
Opponents, on the other hand, argue that adopting a common currency would be difficult due to the economic and political differences between the three countries. It could also lead to a loss of economic sovereignty for each country, as well as potential inflationary pressures.
Ultimately, the decision to adopt a common currency would be a political one that would require the agreement of all three countries. While there are potential benefits to a common currency, there are also potential drawbacks that would need to be carefully considered.
organizational slack allows large organizations flexibility that is not available to smaller companies. group startstrue or false
Answers
Since small firms serve as a catalyst for societal change, it is true organizational slack gives huge enterprises flexibility that is not available to them.
What function does organizational slack serve?The ability to experiment and explore new options is one of the main benefits of having some slack resources. This can entail conducting research into potential new prospects, including asking your consumers to point out areas that could use improvement.
What are some instances of organizational slack?Overstock, extra machine capacity, and indirect personnel are a few instances of absorbed slack. Extra, liquid, and uncommitted resources are known as unabsorbed slack in an organization. Cash and marketable securities are two instances of unabsorbed slack.
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given an economy is initially in equilibrium, how does a shift to the right of the is curve change real gdp and the real interest rate?
Answers
A shift to the right of the IS curve in an initially equilibrium economy would lead to an increase in real GDP and a decrease in the real interest rate.
The IS curve represents the relationship between real GDP (Y) and the real interest rate (r) in the economy, assuming other factors remain constant. A shift to the right of the IS curve indicates an increase in aggregate demand. When aggregate demand increases, businesses experience higher demand for their goods and services, which leads to an increase in production and output. As a result, real GDP increases. This shift reflects an expansionary fiscal policy or an increase in autonomous spending, such as government spending or consumer consumption.
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a contract is substantially performed when performance creates substantially the same benefits as those promised in the contract. true or false
Answers
The statement "A contract is substantially performed when performance creates substantially the same benefits as those promised in the contract" is TRUE.
A contract is a written or spoken agreement that is legally binding between two or more parties. It sets out the terms and conditions that the parties must follow when carrying out the terms of the contract. A contract can be created in many ways, including by a verbal agreement, a written agreement, or an implied agreement. Substantial performance is a term used in contract law to describe the point at which a contract has been executed to a degree that the parties involved have fulfilled their obligations.
When a contract has been substantially performed, it means that the work has been completed to a degree that is acceptable to the parties involved and that the benefits of the contract have been realized. When a contract has been substantially performed, it means that the work has been completed to a degree that is acceptable to the parties involved and that the benefits of the contract have been realized. In other words, the performance creates substantially the same benefits as those promised in the contract.
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Which best describes inserting a table using the Table Gallery?
The user can click on Insert Table.
There are many options on how to include a table.
The user can make a quick selection of the number of rows and columns present.
The user can click to use an Excel spreadsheet.
Answers
Answer:
2
Explanation:
What are the additional costs you pay each year in order to borrow money in loans? This includes both interest and fees.
A: Annual Percentage rate (ARP)
B: Variable Interest
C: Origination Fees
d: Fixed interest
Answers
The annual percentage rate is the additional cost that you pay monthly in order to borrow money in loans.
What is the annual percentage rate?This rate is also expressed as the interest rate. It is the amount that one is charged for the money that they borrowed.
This amount is the actual cost of the loan that they got which is expressed in percentages.
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Which root of insurgency discusses how foreign businesses can dominate critical portions?
Answers
Answer: Occupation or exploitation
Explanation:
The root of insurgency that discusses how foreign businesses can dominate critical portions is referred to as occupation or exploitation.
Foreign business should exploit the local market and take advantage of economies of scale in order to break into such market. One way to exploit I by studying the local market very well and understanding what it entails and what it needs ti further develop which they can use to their advantage.
What is the purpose of business law and why is there a need for it?
Answers
Answer:
So the money isn’t fraud or stolen/illegal
Answer:
Businesses are motivated by wanting to make money. That money needs to be legal and known that its for profit motived and not stolen
in which phase of money laundering is the money clean?
Answers
The phase of money laundering in which the money appears to be "clean" and reintegrated into the legitimate economy is known as the integration phase.
This is the final stage of the money laundering process, in which the laundered funds are reintroduced into the economy in a way that makes them appear to be legitimate proceeds of business activities.
Integration can involve a range of activities, such as investing the funds in real estate or other assets, or depositing them in a bank account. At this point, the laundered funds have been successfully concealed from authorities and appear to be legitimate assets.
However, law enforcement agencies may still be able to trace the funds back to their illegal origins through financial analysis and investigation.
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