S. S. Sarkar (S. S.S.), a real estate investment company, is considering investing in a shopping center. The sale price is $5,000,000 and S. S.S. expects to have positive after-tax and after-mortgage payment cash flows from rents of $400,000 for the next three years. S. S.S. can obtain a mortgage with a downpayment of $3,000,000. At the end of the third year, S. S.S. anticipates selling the shopping center for a net after-tax gain on sale of $4,500,000. If S. S.S.'s required return is 30%, should S. S.S. go ahead and purchase the shopping center?

Vulcan flyovers offers scenic overflights of mount st. helens, the volcano in washington state that explosively erupted in 1982. data concerning the company’s operations in july appear below: vulcan flyovers operating data for the month ended july 31 actual results flexible budget planning budget flights (q) 56 56 54 revenue ($350.00q) $ 16,500 $ 19,600 $ 18,900 expenses: wages and salaries ($3,300 + $91.00q) 8,354 8,396 8,214 fuel ($31.00q) 1,904 1,736 1,674 airport fees ($870 + $35.00q) 2,730 2,830 2,760 aircraft depreciation ($11.00q) 616 616 594 office expenses ($240 + $1.00q) 464 296 294 total expense 14,068 13,874 13,536 net operating income $ 2,432 $ 5,726 $ 5,364 the company measures its activity in terms of flights. customers can buy individual tickets for overflights or hire an entire plane for an overflight at a discount. required: 1. prepare a flexible budget performance report for july that includes revenue and spending variances and activity variances.