Qualification > Commerce
business p2 doubts and notes here
Skelli:
LOL! Thannnkkk yooou sooo much! i didnt know the investments were in year zero! haha and i did get it you made it sound so easy! =)
Crooked:
--- Quote from: Skelli on May 30, 2010, 03:35:30 pm ---LOL! Thannnkkk yooou sooo much! i didnt know the investments were in year zero! haha and i did get it you made it sound so easy! =)
--- End quote ---
yer welcome. =]
Skelli:
okay i know im kinda annoying you now, but this will be my last question. hopefully...
Nov 09 Both components the ARR and the payback, this one is kinda different.
Crooked:
--- Quote from: Skelli on May 30, 2010, 03:57:59 pm ---okay i know im kinda annoying you now, but this will be my last question. hopefully...
Nov 09 Both components the ARR and the payback, this one is kinda different.
--- End quote ---
Investment 60
Rent from Loss of Farm
income
Wind4U
Year 1 40 10
Year 2 40 10
Year 3 40 10
Year 4 40 10
inflow per year is 40 ; outflow is 10
yr 1 = 40-10 = 30; net flow.
yr 2,3 and 4 = ' ' ' ' ' ' ' ' ' ' ' '
total net flow = 30+30+30+30= 120.
for annual profit:
120-60 ( investment cost)
------ = 15 per annual
4 years
ARR = 15 ( annual profit)
---- x 100 = 25%
60 (investment cost)
for the other component,
capital cost; investment cost = 5
inflow is 4 per year; outflow is 1
4-1 = net flow is 3 per year
in the first year..yuh'll earn $3000 back.
for payback period..
amnt req
-------- x 12
net flow in the particular year
2
-- x 12 = 8 months.
3
therefore, it'll take 1 year n 8 months to earn back the money invested.
hope yuh understood. =]
Skelli:
Thanks buddie! Wish you good luck in paper 2! =)
Navigation
[0] Message Index
[#] Next page
[*] Previous page
Go to full version