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1 Mona has a supermarket that she wants to sell today. The expected revenues of the supermarket are hereunder. Mona has found a buyer who
1 | Mona has a supermarket that she wants to sell today. The expected revenues of the supermarket are hereunder. Mona has found a buyer who is willing to buy it for LE 3 milion. If interest rate is 11%, Should mona accept or refuse the offer? Why? | |||||||||||||||
year | 2024 | 2025 | 2026 | 2027 | 2028 | 2030 | 2031 | 2032 | 2033 | 2035 | 2036 | 2037 | 2038 | 2040 | 2041 | |
Expected revenues | 110,000.00 | 132,000.00 | 158,400.00 | 190,080.00 | 228,096.00 | 273,716.00 | 328,460.00 | 394,152.00 | 472,983.00 | 567,580.00 | 681,096.00 | 817,316.00 | 980,780.00 | 1,176,936.00 | 1,412,324.00 | |
r | 11% | |||||||||||||||
2 | Ahmed is offered the following financial options, which ones he should invest in ? | |||||||||||||||
Option 1 | invest in a restaurant LE 15,000,000 | interest rate | 19% | |||||||||||||
Dates | after 1 month | after 4 months | after 5 months | after 7 months | after 9 months | after 10 months | after 14 months | after 16 months | ||||||||
Cash Inflow | $ 2,000,000 | $ 1,000,000 | $ 5,000,000 | $ 1,500,000 | $ 1,800,000 | $ 1,900,000 | $ 2,100,000 | $ 2,200,000 | ||||||||
Option 2 | Invest in a supermarket LE 5,000,000 | interest rate | 18% | |||||||||||||
Dates | after 1 week | after 12 weeks | after 17 weeks | after 20 weeks | after 23 weeks | after 27 weeks | after 34 weeks | after 38 weeks | after 41 weeks | after 46 weeks | after 52 weeks | after 57 weeks | after 60 weeks | |||
Cash Inflow | $ 110,000 | $ 140,000 | $ 155,000 | $ 220,000 | $ 225,900 | $ 432,000 | $ 636,000 | $ 840,000 | $ 925,000 | $ 1,153,005 | $ 152,304 | $ 212,343 | $ 942,145 | |||
3 | When Ahmed was five years old, he received 8000 LE from his relatives as a birthday gift. His dad helped him deposit the money in a bank account. The interest rate on the account is 14% compounded quarterly. Now Ahmed is 18 years old. How much does he have in the account? | |||||||||||||||
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