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Vera_Pavlovna [14]
4 years ago
13

Bau Long-Haul, Inc., is considering the purchase of a tractor-trailer that would cost $367,402, would have a useful life of 7 ye

ars, and would have no salvage value. The tractor-trailer would be used in the company's hauling business, resulting in additional net cash inflows of $80,500 per year. The internal rate of return on the investment in the tractor-trailer is closest to (Ignore income taxes.): Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using the tables provided.
14%
12%
8%
None of above

Business
1 answer:
SCORPION-xisa [38]4 years ago
5 0

Answer:

12%

Explanation:

initial investment $367,402

net cash flows 1 - 7 = $80,500

the IRR is the interest rate at which NPV = 0

we can calculate it by using Exhibit 13B-2 (present value of annuity in arrears)

$367,402 = $80,500 x present value of 7 year annuity in arrears

  • present value of 7 year annuity in arrears at 14% = 4.288
  • present value of 7 year annuity in arrears at 12% = 4.564
  • present value of 7 year annuity in arrears at 8% = 5.206

with 14% ⇒ $80,500 x 4.288 = $345,184

with 12% ⇒ $80,500 x 4.564 = $367,402 CORRECT ANSWER

with 8% ⇒ $80,500 x 5.206 = $419,083

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Answer:

Money available to the buyer is most important factor which needs to be considered. Also the quality of the old tires is considered before making a decision to replace tires. The life of tire is dependent on the running of the car plus the quality of the roads.  

Explanation:

The tire are replaced once they are damaged. The damage can be through accident, roughness of roads, extra mileage and other similar factors. Once the tire is damaged it is better to replace it by the new one as this can be harmful for the commuters to travel in a car whose tires are damaged. There can be puncture or even tire burst situation which could be a threat to life.

4 0
3 years ago
Funds left over from a cover dell education savings account after all education expenses are paid to go whom
Zina [86]

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management of school is one who is responsible to pay for expenses and keep the savings which is remain after deducting of all expenses

8 0
3 years ago
Munchkin is a popular baby clothing brand. The founder of the company, Isabel, conducts a brainstorming session with her employe
Elena L [17]

Answer:

B) upward communication

Explanation:

Upward Communication -

It refers to the flow of information from the lower level to the higher level in the company, is referred to as upward communication.

The method helps to pull out thought and innovative technique from all the employees working in the company , and is used for the betterment of the company.

It helps to have a healthy conversation and decision making process, which helps the company to grow.

Hence, from the question,

The company Munchkin takes idea from all the employees and tries to implement it into the company, thereby showcasing the method of upward communication.

3 0
4 years ago
Suppose a farmer in Georgia begins to grow peaches. He uses​ $1,000,000 in savings to purchase​ land, he rents equipment for ​$5
Brut [27]

Answer:

($500,000)

Explanation:

Economic profit = revenue - explicit costs  - implicit costs (opportunity cost)

The revenue is = $3.00 x 250,000 peaches

                         = $750,000

The explicit costs are = land cost + equipment rent + salaries

                                    = $1,000,000 + 50,000 + 140,000

                                    = $1,190,000

The implicit costs are = interest income + earnings as a shoe salesman

                                    = $20,000 + $40,000

                                    = $60,000

Economic profit = $750,000 - $1,190,000 - $60,000

                          = ($500,000)

Thus, the farmers' total economic profit is actually a total economic loss of $500,000

6 0
4 years ago
Mayan Company had net income of $32,500. The weighted-average common shares outstanding were 10,000. The company has no preferre
madreJ [45]

Answer:

The company's earnings per share is $3.25.

Explanation:

Earnings per share (EPS) refers to a financial metric that shows an indication of the amount of money that is made a company for each share of its stock.

The earnings per share of Mayan Company can be calculated using the formula for calculating earnings per share as follows:

Earnings per share = Net income /  Weighted-average common shares outstanding ..................... (1)

Where;

Net income = $32,500

Weighted-average common shares outstanding = 10,000

Substituting the values into equation (1), we have:

Earnings per share = $32,500 / 10,000

Earnings per share = $3.25

Therefore, the company's earnings per share is $3.25.

6 0
3 years ago
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