Reference no: EM132546774

Question 1: Estimated gross income is $ 15,000,000, estimated variable costs is $ 5,000,000 Estimated fixed costs for owner operator's allowance for labour and management was $ 1,800,000, Administration costs of K 1,200,000 and depreciation of machinery estimated at $ 1,000,000.Interest paid on loans was $ 1,000,000. Income tax was estimated to be 30% of estimated net profit. From the above values calculate operating profit, net profit and the estimated growth of the farming family's equity in their farm business.

Question 2: You sold some goods to a person for $ 10,000. However, the person said that they did not have that amount now but could pay you that amount in 5 years. What would be the present- day value of that future sum if it were received in 5 years. Show your calculations for converting a future amount into a present-day lump sum.