You will be making 3 annual contributions of £750 to a bank account that pays an annual percentage rate (APR) of 6.80% compounded semiannually. What will be the balance of the bank account at the end of year 3?
Last year a company invested £80,000 in purchasing machine A. Today, the company is offered to replace machine A with machine B, which costs £128,000 before taxes. Machine B will be depreciated on a straight-line basis over 10 years, after which it will have a salvage value (the remaining value after end of use and full depreciation) of £16,000.00. Machine B produces EBITDA (earnings before interest, taxes, depreciation, and amortization) of £30,000 per year for the next 10 years. Machine A produces EBITDA of £15,000.00 per year, and is being depreciated on a straight-line basis over a useful life of 12 years, after which it will have a salvage value of 0.00. All other expenses for the two machines are identical. There is a tax rate of 36% on the buyer. If the company is to perform the replacement now, what would be the Net Profit Value of the previous two years in a year's time before taxes?
A company whose gross profit margin is 20% decided to increase the retail price of product A that is sold for £40 by 15%. What is the gross profit margin change?
BigMart is a British supermarket chain which retails food, clothing and general merchandise. As part of BigMart's efforts to reduce operational costs, it was decided to integrate self-checkout cashier systems, operated directly by the customers, allowing only credit card payments. With this change, for every three self-checkout posts only one human cashier would be required, functioning as backup in case of problems occurring during the automated process. Nevertheless, an automatic work station is expected to work slower than a station operated by a skillful cashier. Therefore, it was initially agreed that 50% of the work stations would remain human operated, while two automatic stations would replace each human operated station removed. Additionally, surveillance cameras would be required to prevent product theft attempts by customers.
2. Note: Disregard data from the previous question
BigMart has decided to run a pilot of the system for 6 months in all of its London branches. What would be the addition to the chain's revenues throughout the pilot, under the following assumptions:
Number of branches in London: 16
Average sum paid buy a customer: £48
Average number of work stations per branch before pilot: 12
Average annual number of work days: 240
Working hours per day: 9
Average number of Customers per hour in human operated posts: 12
Average number of Customers per hour in automatically operated posts: 8
One year ago Multi-gas stock had just run up from £9 per share to £30 per share due to successful gas drillings in the North-sea. With £24,000 of your own plus money you borrowed from your broker, you bought £48,000 worth of Multi-gas stock on margin at £25 per share. The call money rate (which was the rate at which your broker would lend to you) was 9%. The stock recently declared its first dividend: £2.25 per share. (The ex dividend date is tomorrow.) The stock is presently trading at £32 per share. Commissions are 0.15% (each way), payable when you close out your position. If you close out your position today, what is your total balance after the entire transaction.
A company has set itself a goal to reach a 40% increase in monthly revenues. In order to do so, the company reduced the price of its product by 25% What net increase in sales is needed in order to reach the desired goal?