A home improvement firm has quoted a price of? $9,800 to fix up? eric's backyard. five years? ago, eric put? $7,500 into a home

Answer:

Total cost= $104,022.6

Explanation:

Given the following data:

The company anticipates $6000 in expenditure after 1 year, $9000 after 3 years, and $10,000 annually from year 6 through year 10.

The annual interest rate is set at 12%.

We will apply this formula:

FV= PV*(1+i)^n

FV= 6000*(1.12)^9= 16,638.47

FV= 9000*(1.12)^7= 19,896.13

Total= $36,534.6

For the last three amounts, we shall use the formula:

FV= {A*[(1+i)^n-1]}/i

A= annual payment

FV= {10000*[(1.12^3)-1]}/0.12= 67,488

The cumulative cost is 67,488 + 36,534.6= $104,022.6

Answer:

The interest amounts to $1,000,000.

Explanation:

The standard format of an income statement includes:

Revenue/Sales (+)

Cost of Goods Sold (COGS) (-)

=Gross Profit

Marketing, Advertising, and Promotion Expenses (-)

General and Administrative (G&A) Expenses (-)

=EBITDA

Depreciation & Amortization Expense (-)

=Operating Income or EBIT

Interest (-)

Other Expenses (-)

=EBT (Pre-Tax Income)

Income Taxes (-)

=Net Income

For this case:

EBIT equals $6,000,000.

The interest is to be determined.

Tax is calculated as 0.40.

EBITDA stands at $3,000,000.

The interest formula is: interest = [EBITDA / (1 - tax)] - EBIT

Substituting values, interest = 3000000 / 0.60 - 6000000 = -$1,000,000.

With EBIT at 6 million, the interest is $1 million, and the tax amounts to 2 million (calculated as (EBIT - interest) * 0.40).

Thus, the net income is $3 million.

Answer:

60000

Explanation:

240,000 divided by 4