All categories

3 years ago

The internal rate of return is:

Business

1 answer:

shepuryov [24]3 years ago

5 0

Answer:

The correct answer is letter "A": the discount rate that makes the net present value of a project equal to the initial cash.

Explanation:

The Internal Return Rate, or IRR, is a central component of corporate finance capital budgeting. Companies use it to determine which discount rate will make the Present Value of the after tax cash flows equal to zero (0). Any project that returns an IRR greater than 0 ads has a value.

<em>In the decision-making process, IRR is subordinated to Net Present Value because it is preferred an absolute dollar amount that is higher than a higher IRR.</em>

You might be interested in

The super prize in a contest is $10 million. This prize will be paid out in equal yearly payments over the next 20 years. If the

Angelina_Jolie [31]

Answer:

contest sponsors have to deposit $6795163.17 in the escrow account

Explanation:

given data

amount = $10 million

time = 20 year

rate = 4 %

to find out

how much do the contest sponsors have to deposit in the escrow account

solution

we know Cash flow per period = 10000000/20 = $500000

we will apply here future value formula to find amount

future value = cash flow × $\frac{1-(1+r)^{-t}}{r}$

here r is rate and t is time

put here value

future value = 500000 × $\frac{1-(1+0.04)^{-20}}{0.04}$

future value = 6795163.1724

so contest sponsors have to deposit $6795163.17 in the escrow account

4 0

3 years ago

On January 2, 2016, Alpha Company acquired a new machine by signing a 5 year note for $62,000. The estimated service life is eig

spin [16.1K]

Answer:

The answer is $10,800

Explanation:

Straight line method of depreciation is:

Cost - residual value/number of useful life

Cost - $62,000

Residual value - $8,000

Number of years - 5years

=62,000 - 8,000/5

=57,000/5

$10,800.

Therefore, $10,800 will be charged every year.

8 0

3 years ago

What are the job training/education requirements for being a judge?

jasenka [17]

You will need a law degree

6 0

2 years ago

The marginal cost of a product can be thought of as the cost of producing one additional unit of output. For example, if the ma

jek_recluse [69]

Answer:

Check the explanation

Explanation:

C(x) = 0.06x^2 - 6x + 218

Its a quadratic function , minima would occur at vertex.

x is no. of digital cameras

x = -b/2a = -(-6/2*0.06) = 50 cameras

Minimum marginal cost : C(50) = 0.06(50)^2 - 6*50 + 218 = $ 68

4 0

3 years ago

Crawford Fishing had a net income of $35,640 in 2017. They decided to pay $3,000 in dividends and keep the rest to help expand t

CaHeK987 [17]

Answer:

The profit that they keep to reinvest in the business is recorded as D : retained earnings.

Explanation:

Retained earnings (RE) is the amount of net income left over for the business after it has paid out dividends to its shareholders.

4 0

2 years ago