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BARSIC [14]
2 years ago
12

The company's wacc is 10.5%. what is the irr of the better project? (hint: the better project may or may not be the one with the

higher irr.) round your answer to two decimal places.
Business
1 answer:
Inessa05 [86]2 years ago
5 0

The better the IRR, the better. but, a corporation may additionally decide on a mission with a decreased IRR as it has other intangible advantages, together with contributing to a larger strategic plan or impeding competition.

Solution:

NPV of Project S= -$1,000 +$895.03/(1+10.5%) + $250//(1+10.5%)^2 +$10//(1+10.5%)^3 +$5//(1+10.5%)^4 =25.49320776

IRR of Project S= -$1,000 +$895.03/(1+r%) + $250//(1+r%)^2 +$10//(1+r%)^3 +$5//(1+r%)^4 =0

IRR =12.80%

NPV of Project L = -$1,000+ $5/(1+10.5%) +$260/(1+10.5%)^2 + $420/(1+10.5%)^3 + $802.50/(1+10.5%)^4

=$67.01

IRR of Project L=

-$1,000+ $5/(1+r%) +$260/(1+r%)^2 + $420/(1+r%)^3 + $802.50/(1+r%)^4 =0

IRR =12.700%

Project L is better than Project S since L has higher NPV

IRR of Project L is 12.7%.

Learn more about IRR here:-brainly.com/question/28428807

#SPJ4

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For her first speech, Rebekah plans to explain her interest in dance beginning with her childhood and continuing through her day
PIT_PIT [208]

Answer:

Chronological

Explanation:

The pattern would be chronological because she has used a sequence which is according to the progression of time which in this case starts from early days and get through schools days to date. This is a chronological pattern is best used when history is told because random sequence doesn't makes sense in this case and also that the person who tells the history makes it more interesting when he make the flow of information in a chronological pattern. So the right answer here is Chronological patter.

4 0
3 years ago
The present value factor for an ordinary annuity at 10% for 6 periods is 4.3553. The lease does not transfer the property to Whi
gogolik [260]

Complete question:

On January 1. Year 1. White Co. sold a property with a remaining useful life of 20 years to Blue Co. for $900.000. At the same time. White entered into a contract with Blue for the right to use the property (leaseback) for a period of 6 years. with annual rental payments of 580.000 that approximate the market rental payments for similar properties. On January 1. Year 1. the carrying amount of the property was 5680.000. and its fair value was 5770.000. A discount rate for the lease of 10% is used by both White and Blue. The present value factor for an ordinary annuity at 10% for 6 periods is 4.3553. The lease does not transfer the property to White at the end of the lease term and does not include a purchase option.  

What amount of lease expense for the right of use of the property is recognised by White in Year 1 ?

A. $0

B. $130,000

C. $90,000

D. $220,000

Answer:

$90,000 amount of lease expense for the right of use of the property is recognised by White in Year 1

Explanation:

If the leaseback is known as an operating lease, the original transition to the buyer-lessor of the asset should be taken into account as the selling of an asset, given that all the income identification requirements have been fulfilled.

If the deal is of equal value, the lender lease is informed of the gain or loss of sale between the purchase price and the sum of the land that is held. Yet this is not a equal value trade. The property's sale price is higher than its market value. Accordingly, the income or loss on sale seems to be the difference between the equal worth and the value of the land.

Therefore, on 1 January, White records a benefit of $90,000 in revenue of $770,000 (fair value of $680,000 in carrying amounts)

4 0
3 years ago
Who do you like better?? BTS or BlackPink???
Snowcat [4.5K]

Answer:

bts, you? (:

Explanation:

3 0
3 years ago
The manager of a 100-unit apartment complex knows from experience that all units will be occupied if the rent is $900 per month.
Aliun [14]

Answer:

$950 in order to maximize the revenue.

Explanation:

The computation of monthly rent in order to maximize revenue is shown below:-

R (x) = Rent price per unit × Number of units rented

= ($900 + $10 x) × (100 - x)

= $90,000 - 900 x + 1000 x - 10 x^2

R (x) = -10 x^2 + 100 x + $90,000

Here to maximize R (x), we will find derivative and equal it to zero

R1 (x) = -20 x + 100 = 0

20 x = 100

x = 5

Therefore the monthly rent is p(5) = $900 + 10(5)

= $900 + 50

= $950 in order to maximize the revenue.

3 0
3 years ago
A manufacturing plant is trying to determine standard production per day for an incentive program. Suppose that the incentive pr
raketka [301]

Answer:

He would receive $15 under incentive plan.

Explanation:

The given values are:

Average observed time

= 280 seconds per unit

Performance rating

= 105%

i.e.,

= 1.05

Allowance factor

= 13%

i.e.,

= 0.13

So,

⇒  Standard \ time = \frac{(Average \ observed \ time\times Performance \ rating)}{1-Allowance \ factor}

On putting the estimated values, we get

                             =\frac{(280\times 1.05)}{(1-0.13)}

                             =\frac{294}{0.87}

                             = 337.93 \ seconds

The available time will be:

= (8 \ hours\times 60 \ min/hr\times 60 \ sec/min)

= 28800  \ seconds

Now,

The Standard production per day will be:

= \frac{Available \ time}{Standard \ time}

= \frac{28800}{337.93}

= 85.22 \ units

Since he generates 100 units, he consumes about 15(00-85,22) units per day well above normal production.  

So that he's going to get:

= 15\times 1

= 15 ($)

8 0
3 years ago
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