Value of Future Payments » business

If I need to go out of business and my landlord theatens to keep me on the hook for a year left on my lease..?

Editor — Sat, 05 Jun 2010 16:36:58 +0000

My business has become a total quagmire. I owe 4 months back rent and am looking for work. I would like to get out of my lease. I think a fair deal would be as follows: “You disolve my lease and don’t make me liable for future payments, and I’ll agree to work out a payment plan for the back rent……..or else…..I file bankruptcy and you get nothing.”

Can bankruptcy wipe out back rent?
Landlord- Get off your moral high horse. You act like I wanted to be in this situation. I am suffering. Our economy tanked and my business fell off a cliff, and you have the audacity to call me dishonest. My dreams crumble as my landlord sits on his F***ing yacht and tries to get off on furthering my misery. People like you make me sick.

Business Finance Question.?

Editor — Thu, 27 May 2010 09:40:56 +0000

Mrs Shafi has to choose the better of two equally costly cash flow streams, annuity A and
annuity B. Annuity A is an annuity due with a cash inflow of Rs. 9,000 for each of 6 years. Annuity B is an ordinary annuity with a cash inflow of Rs. 10,000 for each of 6 years. Assume that Mrs Shafi can earn 15 percent on her investments.

Help Mrs Shafi to decide which annuity is more better for her and why?

Note: (Calculations are not required.Do your calculations in rough work and support your answer in just one line.)

Need help in Business Mathematics?

Editor — Tue, 25 May 2010 05:40:03 +0000

1)If the salary of an employee is as follows:
Basic salary = 12,000 Rs.
Allowances = 4,000 Rs.

Then cost of the company on account of leaves (8%), group insurance/medical (4.5%) and other social benefits (6.2%) are

a) Leaves cost = 0.08 x 16000
Group insurance/medical = 0.045 x 16000
Other social benefits = 0.062 x 16000
b) Leaves cost = 0.08 x 12000
Group insurance/medical = 0.045 x 12000
Other social benefits = 0.062 x 12000

c) Leaves cost =16000+ [0.08 x 12000]
Group insurance/medical = 16000+ [0.045 x 12000]
Other social benefits = 16000+ [0.062 x 12000]

d) Leaves cost = 0.08 x 8000
Group insurance/medical = 0.045 x 8000
Other social benefits = 0.062 x 8000

2)Price of a certain item increases 5 % a year. If the price is Rs. 478 in year 2008 then what will be the price of item in year 2012.

a)578
b)573.6
c)501.9
d)*581.01

3)Suppose you buy stock in two companies A and B, both at a price of Rs. 38.25 per share in January 2008. Suppose that by July 2008, stock A has risen in value to Rs. 58.35 per share. Then for stock A the percentage change is

a)57.78%
b)34.45%
c)52.55
d)20.1 %

4)The amount you have in the bank after 3 years if you put in Rs 1000, at a 6% annual rate of interest can be calculated by

a) 1000(1 + 0.6)3
b) 1000+ ( 1000 * 0.06 * 3)
c) 1000 * [(1 + 0.06)3 -1] /0.06
d) 1000* 0.06* 3

5)If you wish to have Rs. 20, 00000 after 30 years from now, what will you need to invest this year if you earn 5% interest compounded semi annually?

a) 20, 00000(1 + 0.05)30
b) 20, 00000(1 + 0.05)60
c) 20, 00000 + (2000000*0.05*30)
d) 20, 00000 (1+0.025)60
e) 20, 00000 [(1 + 0.05)30 -1]/0.05

6)In a sinking fund, a firm makes a series of equal payments into a savings account in order to have a certain dollar amount available at some point in the future. What type of time value problem is this?

a)a present value of a dollar problem
b)a future value of a dollar problem
c)a present value of an annuity problem
d)a future value of an annuity problem
e)None of the above

7)Ali decides to save Rs. 50,000 per year so that he can make a down payment on a house in 6 years. If he makes the payments at the end of each year, assume an interest of 6% compounded monthly, how much will he have accumulated at the end of 6 years?

a) 50000[(1 + 0.06)72 -1]/ (0.06)
b) 50000[(1 – (1 + 0.06)-6]/ 0.06
c) 50000[(1 + 0.06/12)72 -1]/ (0.06/12)
d) 50000(1+0.06)6
e) 50000[(1 + 0.06)6 -1]/ (0.06)
8)If you want to withdraw Rs 25,000 at the end of each year for the next 7 years then what amount must you invest today at 5% compounded quarterly?
Q9)If for the next 7 years you save Rs. 20,000 per year then how much will you have accumulated at the end. Payments are to be made at the end of each year, assume an interest of 8% compounded semi annually?
Which function can give you correct answer of above question?

a)FV(0.08, 7, 20000, 0,0)
b)FV(0.08, 7, 20000, 0, 1)
c)FV(0.08/2, 7*2, 20000, 0, 0)
d)PV(0.08/2, 7*2, 20000, 0, 0)
e)PV(0.08, 7, 0, 20000, 1)

10)On retirement company decided that not to give a lump sum amount but will pay Rs. 40,000 over 15 years. How much amount you actually get, assuming that you could earn 5% interest, compounded annually.
Which function can give you correct answer of above question?

a)PV(0.05, 15, 40000, 0, 0)
b)ISPMT(15*2,0.05/2,40000,0,0)
c)PV(0.05/2, 15*2, 40000, 0, 0)
d)PPMT(0.05,15,40000,0,0)
e)FV(0.05,15,40000,0,0

Annuities Business Calculations?

Editor — Tue, 11 May 2010 22:42:13 +0000

Vusi received a R10000 bonus from his employer.Rather than spend it all at once,he decided to deposit it into a bank account that pays 12% interest p.a. compounded monthly.He will make equal monthly withdrawals for 2 years.after the last withdrawal the account will be empty.How much will he withdraw each month?

1)R470.72
2)R500
3)R512.35
4)R460.53

Please show steps

Business Finance Question-Help Please?

Editor — Mon, 03 May 2010 08:38:55 +0000

You are asked to set up a fund of semiannual payments to be compounded semiannually to accumulate a sum of $100,000 after 10 years at a 8% annual rate (20 Payments). The first payment into the fund is to occur six months from today, and the last payment is to take place at the end of the 10th year.

A.) Determine how much the semi-annual payment should be. (Round to whole numbers)

On the day after the 4th payment is made (the beginning of the third year) the interest rate will go up to a 10% annual rate, and you can earn a 10% annual rate on funds that have been accumulated as well as all future payments into the fund. Interest is to be compounded semi-annually on all funds.

B) Determine how much the revised semiannual payments should be after this rate change (there are 16 payments and compounding dates.) The next payment will be in the middle of the third year. (Round all values to whole numbers.)
Please do not refer me to other web sites. They are not helping me with my problem.
I need someone to work the problem out for me so I can see what I am doing wrong. 10 points to the first real answer.

Please help me with this these business law questions.?

Editor — Mon, 26 Apr 2010 12:15:23 +0000

TRUE / FALSE
1) The words “I promise to sell my house for $50,000″ constitute an offer.

2) The promisor’s intention that his or her promise be legally binding is not required for the formation of a contract.

3) The statement, “I promise to buy from you all the coal that I need in my business next year” constitutes an offer which is reasonably definite.

4) Not all terms of an offer need be expressed. Some may be implied.

5) If a contractual performance becomes illegal after the offer has been accepted but before the performance has been rendered, the offer is terminated.
MULTIPLE CHOICE

9) Under the common law which of the following elements is not required for an offer to be effective?
A) The offeror intends to be bound by the offer
B) The offeree is capable of accepting the offer
C) The terms of the offer are reasonably certain or definite
D) The offer is communicated by the offeror to the offeree

10) The intent of the offeror to extend a serious offer to the offeree is typically determined by reference to
A) The beliefs of the offeror
B) The intentions of the offeror
C) The assumptions of the offeror
D) The words and conduct of the offeror

12) Which of the following constitute legal offers?
A) Expressions of opinion
B) Statement of intention
C) Catalogue advertisements
D) None of the above

13) Harry takes his canary to Dr. Bugs for surgery on a broken wing, Dr. Bug says that the wing should be fully healed within a week. The wing does not heal within a week. Dr. Bugs is
A) Not liable for breach of contract, because the statement was an opinion
B) Not liable for breach of contract, but Harry is excused from paying the doctor’s bill
C) Not liable for breach of contract, because the repair of bird wings is not proper subject matter for a contract.
D) Liable for breach of contract.

14) Roger announces that he plans to sell his stock in Porcine Aviation below the current market value. Andrew hands Roger a check for the amount. Roger
A) Must accept the check and give Andrew the stock
B) May refuse the check, unless it is certified by a bank
C) May refuse to accept the check, because he merely expressed his intention to enter into a future contract to sell the stock
D) None of the above.

16) If Fred promises to pay Bill $50 for painting the house and Bill then proceeds to paint the house, the act of painting the house
A) Imposes a moral obligation on Fred to pay Bill
B) Is the consideration that creates Fred’s contractual obligation to pay Bill.
C) Imposes no payment obligation unless Fred is completely satisfied with the job.
D) None of the above

18) A performance that is of legally sufficient value may consist of
A) An Act (other than a promise)
B) A forbearance
C) The creation, modification, or destruction of a legal relation
D) All of the above

19) The bargained-for exchange element necessary to form a binding contract is found if
A) the promise induces the conduct of the promisee
B) The promisee induces the making of the promise
C) The promise induces the conduct of the promisee and the promisee induces the making of the contract
D) The promisor induces the conduct of the promisee and the promise induces the making of the conduct.

20)If Red announces that he plans to paint his Rolls-Royce pink but walker, his next-door neighbor, who cannot bear the sight of pink Rolls-Royces, offers to pay red $500 to paint the car a more traditional color, then Walker’s promise to pay is

A) Unenforceable even if Red paints the car a more traditional color
B) Unenforceable because Red should not have considered painting the Rolls-Royce pink in the first place
C) Enforceable because Red agreed to refrain from doing something that he was legally entitled to do.
D) Enforceable because Red preferred the pink color to the more traditional color as evidenced by his prior statement.

23) If Harry promises to pay Larry not to park in a no-parking zone in front of Harry’s house, then the agreement is,
A) Enforceable because Larry is giving up the right todo something that he would otherwise do in the absence of the agreement
B) Enforceable because the agreement accomplishes Larry’s goal that the no-parking zone in the front of his house be kept clear
C) Not enforceable because Larry has no legal right to park in the no-parking zone
D) Not enforceable because the no-parking zone is owned by the city.

24) If Macdonald hires Jerry to work for him for one month at a weekly salary of $250 but Macdonald orally agrees two weeks later to double Jerry’s salary, then the oral agreement is
A) Enforceable because the parties have executed an accord and satisfaction
B) Unenforceable due to the pre-existing duty role
C) Unenforceable because Jerry has incurred no additional detriment in exchange for Macdonald’s

Does anyone know the answers to these questions ? They are for my Business Law class… Thanks?

Editor — Sun, 25 Apr 2010 16:55:11 +0000

TRUE / FALSE
1) The words “I promise to sell my house for $50,000″ constitute an offer.

2) The promisor’s intention that his or her promise be legally binding is not required for the formation of a contract.

3) The statement, “I promise to buy from you all the coal that I need in my business next year” constitutes an offer which is reasonably definite.

4) Not all terms of an offer need be expressed. Some may be implied.

5) If a contractual performance becomes illegal after the offer has been accepted but before the performance has been rendered, the offer is terminated.
MULTIPLE CHOICE

12) Which of the following constitute legal offers?
A) Expressions of opinion
B) Statement of intention
C) Catalogue advertisements
D) None of the above

A)Unenforceable even if Red paints the car a more traditional color
B)Unenforceable because Red should not have considered painting the Rolls-Royce pink in the first place
C)Enforceable because Red agreed to refrain from doing something that he was legally entitled to do.
D)Enforceable because Red preferred the pink color to the more traditional color as evidenced by his prior statement.

Does any2 do business about coca cola?

Editor — Sat, 24 Apr 2010 21:34:55 +0000

would any1 no the blank on this:

Coca cola makes a large profit without making any mistake each year. The profit is either paid to shareholder as dividends, or kept within the business for future investment. On average the value of coca cola shares has increased, this means that they chose to sell the share. The value of the dividend payment made to shareholder has also increased each year.

Coca cola continue to increase their brand portfolio by, bottling and distributing new drinks. New drinks recently launched by diet include (Blank space need help) coca cola has social responsibility, and the launch of the heather option soft drinks has added to their success.

Coca cola recycle a large amount of the waste it produces; this is above the target level for recycling set for business by the government. Coca cola has successfully built a strong brand portfolio by introducing new soft drinks and improving existing brands. The main brands offered by coca cola are Fanta Orange,

BUSINESS FINANCE .PLEASE SOLVE THIS QUIZ?

Editor — Fri, 09 Apr 2010 08:36:01 +0000

1. A firm has paid out Rs. 150,000 as dividends from its net income of Rs. 250,000. What is the retention ratio for the firm?
a. 12 %
b. 25 %
c. 40 %
d. 60 %

2. ROE = ____________________

a. ROA x Equity Multiplier
b. ROA x ( 1 + Debt Equity Ratio)
c. Profit Margin x Total Assets Turnover x Equity Multiplier
d. All of the given options

3. Which of the following is NOT an external use of financial statements information?
a. Evaluation of credit standing of new customer
b. Evaluation of financial worth of supplier
c. Evaluation of potential strength of the competitor
d. Evaluation of performance through profit margin and return on equity

4.If you plan to save Rs. 10,000 with a bank at an interest rate of 8%, what will be the worth of your amount after 4 years if bank offers simple interest?
a. Rs. 3,200
b. Rs. 10,084
c. Rs. 13,200
d. Rs. 15,240

5.Which of the following process can be defined as the process of generating earnings from previous earnings?
a. Discounting
b. Compounding
c. Factorization
d. None of the given options

6. Both future value and present value of a sum of money are based on:
a. Interest rate only
b. Number of time periods only
c. Both interest rate and number of time periods
d. Neither interest rate nor number of time periods

7. Which of the following is CORRECT regarding the present value discount factor?
a. It is greater than 1.0
b. It is equal to zero when discount rate is zero
c. It increases as the time period increases
d. It decreases as the discount rate increases

8. In how many years, an amount will be doubled at a discount rate of 8 percent?
a. 3 years
b. 6 years
c. 9 years
d. Cannot be determined without more information

9.What is the present value of the following end‐of‐year cash flows if the discount rate is 7 percent? Years 1 2 3 Cash Flow (Rs.) 600 950 1,200
a. Rs. 1,998
b. Rs. 2,004
c. Rs. 2,171
d. Rs. 2,371

10. In which of the following type of annuity, cash flows occur at the beginning of each period?
a. Ordinary annuity
b. Annuity due
c. Perpetuity
d. None of the given options

11. How many years will it take to pay off a Rs. 11,000 loan with a Rs. 1,241.08 annual payment and a 5% interest rate?
a. 6 years
b. 12 years
c. 24 years
d. 48 years

12. What is the effective annual rate of 7 percent compounded monthly?
a. 7.00 percent
b. 7.12 percent
c. 7.19 percent
d. 7.23 percent

13. A borrower is able to pay Rs. 40,000 in 5 years. Given a discount rate of 12 percent, what amount of money the lender should lend?
a. Rs. 14,186
b. Rs. 18,256
c. Rs. 22,697
d. Rs. 28,253

14. You have Rs. 1,000 to invest. You have 2 choices; first is the savings account A, which earns 8.75 percent compounded annually and second is the savings account B, which earns 8.50 percent compounded monthly. Which account should you choose and why?
a. Account A; because it has a higher effective annual rate
b. Account B; because it has a higher effective annual rate
c. Account A; because it has the higher quoted rate
d. Account B; because the quoted rate is higher

15. A company issues bonds with a Rs. 1,000 face value. What is the coupon rate if the coupon payments of Rs. 60 are paid every 6 months?
a. 3 percent
b. 6 percent
c. 9 percent
d. 12 percent

16. Which one of the following statements is INCORRECT regarding a bond?
a. A bond is an evidence of debt issued by a corporation or a governmental body
b. A bondholder has a part of ownership in the firm
c. A bond represents a loan made by investors to the issuer
d. When a corporation wishes to borrow from public on a long term basis, it does so by issuing or selling bonds

17. What will be the value of a Rs. 1,000 face‐value bond with an 8% coupon rate at a 15% required rate of return?
a. More than its face value
b. Less than its face value
c. Equal to its face value
d. Cannot be determined without more information

18. Which of the following relationships holds TRUE if a bond sells at a premium?
a. Bond Price < Par Value and YTM > coupon rate
b. Bond Price > Par Value and YTM > coupon rate
c. Bond Price > Par Value and YTM < coupon rate
d. Bond Price < Par Value and YTM < coupon rate

19. When corporations borrow, they generally promise to:
a. Make regular scheduled interest payments
b. Give the right of voting to bondholders
c. Repay half of the original amount borrowed
d. Give an ownership interest in the firm
20. Given two bonds identical but for coupon, the price of the lower‐coupon bond will change ________ that of the LD®G!AJ˜™>higher‐coupon bond for a given change in market interest rates.
a. More than
b. Equal to
c. Less than
d. None of the given options

Is there a good non business website about structured settlements?

Editor — Wed, 07 Apr 2010 00:35:36 +0000

I have a structured settlement that I want to find out more information about.Do you know a website that isn’t owned by a company and trying to cash in on my settlement, I need free information.

if i sell my business for 100,000 profit can i have the money put directly into annuities so we only pay tax?

Editor — Sat, 03 Apr 2010 20:36:24 +0000

sorry i didnt see i was limited to characters. my understanding on annuities is that you only pay tax on the money you take out of the account . would it still be labled capital gains and still be subject to tax any way?

Business Finance help?

Editor — Tue, 23 Mar 2010 14:35:54 +0000

Mr. Rambo, President of Assault Weapons, Inc., was pleased to hear that he had three offers from major defense companies for his latest missile firing automatic ejector. He will use a discount rate of 12 percent to evaluate each offer.

Offer 1
$500,000 now plus $120,000 from the end of year 6 through 15. Also, if the product goes over $50 million in cumulative sales by the end of year 15, he will receive an additional $1,500,000. Rambo thought there was a 75% probability this would happen.

Offer 2
25% of the buyer’s gross margin for the next four years. The buyer in this case is Air Defense, Inc. (ADI). Its gross margin is 65%. Sales for year 1 are projected to be $1 million and then grow by 40% per year. This amount is paid today and is not discounted.

Offer 3
A trust fund would be set up for the next 9 years. At the end of that period, Rambo would receive the proceeds (and discount them back to the present at 12%). The trust fund called for semiannual payments for the next 9 years of $80,000 (a total of $160,000 per year). The payments would start immediately. Since the payments are coming at the beginning of each period instead of the end, this is an annuity due. To look up the future value of the annuity due in the tables, add 1 to n (18 + 1) and subtract 1 from the value in the table. Assume the annual interest rate on this annuity is 12% annually. Determine the present value of the trust fund’s final value.

Required:
Show work and find the present value of each of the three offers and then indicate which one has the highest present value.

If you sold a business, and put the money in annuities, could you get out of paying the taxes come April 15th?

Editor — Tue, 23 Mar 2010 00:36:27 +0000

The government takes so much when you sell a business you busted your a#@ for.

Does anyone want to help me get a business commercial on tv and be my business partner?

Editor — Fri, 19 Mar 2010 01:36:37 +0000

My business: I buy structure settlement, real estate seller financed note, lottery winning, invoice, land note, and more. JUST LIKE J.G. WENTWORTH

Does anyone want to be my business partner and help me get a business commercial on tv.?

Editor — Thu, 18 Mar 2010 02:36:49 +0000

I need a partner to help with my business. What I do is I buy structure settlement, lottery winning, real estate note and more. I am trying to get a commercial like J.G. Wenthworth.