Answer:
Project Size IRR
A $650,000 14.0%
B 1,050,000 13.5
C 1,000,000 11.2
D 1,200,000 11.0
Explanation:
Based on the information given the set of projects that should be accepted should be the project that has higher Internal rate of return (IRR) than the Weighted average cost of capital (WACC) percentage of 10.8% . Hence, the set of projects that should be accepted are: Project A,B,C,D
Project Size IRR
A $650,000 14.0%
B 1,050,000 13.5
C 1,000,000 11.2
D 1,200,000 11.0
Total $3,900,000
Based on the above we can see that Project A,B,C,D has a total of $3,900,000 which is higher than the retained earnings amount of $2,500,000.
Therefore the set of projects that should be accepted should be Project A,B,C,D
Answer:
Opening Cash Balance = $ 12,000
Add: Expected receipt = $ 30,000
Total Cash Available = $ 42,000
Less: Cash disbursement = $ 34,500
Less: Minimum Balance = $ 10,000
Closing Balance = ($ 2,500)
Therefore, company must borrow = $ 2,500
Examples of some of the most prominent hard currencies are listed below: The U.S. dollar (USD) The euro (EUR) ... The Australian dollar (AUD)
Answer: $1,591.80
Explanation:
This is an annuity as the deposits are constant.
The Future value of an annuity is;
= Annuity * Future value interest factor of annuity, 6% , 3 years
= 500 * 3.1836
= $1,591.80
Answer:
$1,779.90
Explanation:
Formula for finding the amount he has to save, this formula would be used :
Amount = FV / annuity factor
Annuity factor = [(1 + r)^n - 1 / r]
FV = Future value = $5920
n = number of years = 3
i = interest rate = 10.5
Annuity factor = (1.105^3 - 1 ) / 0.105 = 3.326025
$5920 / 3.326025 = $1,779.90
