Question
1. You were a wise investor and purchased an investment property in Key West, FL five years ago when the market was depressed. It generates
1. You were a wise investor and purchased an investment property in Key West, FL five years ago when the market was depressed. It generates $12,000 annually in rental income and you purchased it for $200,000. The current appraised value is $212,000. What is the return on your investment this year?
2.The insan Corporation has an opportunity to expand its operation to include the production of environmentally friendly air purification systems for commercial buildings. The cost to build the production plant is $980,000, and carries an 8% opportunity cost to implement. Year 1, the plant will produce $350,000 in cashflow, years 2 to 4 will produce $250,000 cashflow each year, and year 5 will produce $200,000 cashflow.
Calculate Payback period:
Calculate Net Present Value:
Calculate Internal Rate of Return:
3. Explain Financial Statement Analysis relevence to financial manager not more than 10 sentences.
3. Which of the following would indicate improvement in a company's financial position, holding other things constant?
a.The operating profit margin decreases.
b.The times-interest-earned ratio decreases.
c.The inventory turnover increases.
d.The return on assets ratio decreases.
e.The debt ratio increases.
4. insan Corporation just announced that its net income was lower than last year. Nevertheless, analysts estimate that the companys net cash flow increased. What factors could explain this inconsistency?
a.The companys depreciation expense increased.
b.The companys interest expense declined.
c.The company had an increase in its non-cash revenues.
d.Answers a and b are correct.
e.Answers b and c are correct.
please accurate answers are requeted and solve the complete question
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