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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>

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Bramble Corp. took a physical inventory on December 31 and determined that goods costing $210,500 were on hand. Not included in

Fofino [41]

hshjs

Explanation:

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3 0

4 years ago

A florist is buying a number of motorcycles to expand its delivery service. These will cost $78,000 but are expected to increase

blsea [12.9K]

Answer:

The payback period will be of 26 months, that is, 2 years and 2 months.

Explanation:

Given that the total cost of motorcycles has been $ 78,000, and that their use will increase monthly profits by $ 3,000 per month, the payback period will be determined from the following calculation:

3,000 x 12 = 36,000 (that is, for a year motorcycles will report an extra $36,000)

So, we must divide the total spent by the extra annual income, to determine the total amount of time in which the investment will recover:

78,000 / 36,000 = 2.16

Since 2.16 is calculated in decimals, and the years have 12 months, we must multiply this result by 12 to determine the number of months in which the investment will recover.

2.16 x 12 = 26

Therefore, the payback period will be of 26 months, that is, 2 years and 2 months.

7 0

4 years ago

You would like to establish a trust fund to provide $150,000 a year forever for your heirs. The expected rate of return is 4.3 p

inn [45]

Answer:

$3,488,372.09

Explanation:

Data provided in the question

Annual income provided per year = $150,000

Expected rate of return = 4.3%

So by considering the above information, the amount of money deposited today is

= Annual income provided per year ÷ Expected rate of return

= $150,000 4.3%

= $3,488,372.09

By dividing the annual income by the expected rate of return we can get the today deposited amount

6 0

4 years ago

____ is a limited partnership agreement that may specify how profits and losses are to be allocated among the partners. If no ag

Leokris [45]

Answer:

The correct answer is: Share of Profits and Losses.

Explanation:

In a limited partnership, there are two types of partners, general and limited.

General partners invest capital and manage the business, and personally liable for debts. Limited partners only invest capital and do not manage a business, and are not personally liable for debts.

Share of Profits and Losses is an agreement that specifies how profits and losses are to be allocated among the partners.

In case there is no such agreement, RULPA which is a revision of ULPA provides that profits and losses are to be shared on the basis of capital contribution of each partner.

7 0

4 years ago

There are 4 households in a locality. The annual income of the first household is $20,000, the annual income of the second house

11Alexandr11 [23.1K]

Answer:

regressive

Explanation:

A regressive tax is basically a tax whose rate increases as your income decreases. Generally you do not need to increase the marginal tax rate of lower income levels, all you need to do is have a flat tax that taxes everyone with the same amount. E.g. everyone pays $2,000 as income taxes. $2,000 per person represents 10% of the first household's income, but it only represents 2.7% of the fourth household's income.

On the other hand, progressive taxes increase as the income level of the taxpayers increases.

8 0

3 years ago