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inna [77]
2 years ago
7

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 th

e higher irr. ) round your answer to two decimal places
Business
1 answer:
Simora [160]2 years ago
7 0

The better Project is Project S having a NPV of $17.968 and IRR of 12.10 %

IRR:

  • An approach to capital budgeting that is used to assess the profitability of a project is the discounted payback time. Internal rate of return is one of these capital planning strategies (IRR).
  • This rate of return corresponds to the point at which a project's net present value equals zero. Since it does not account for any outside forces, such as inflation, they call it internal.

The calculator's capabilities will be utilized to determine the IRR,

Project S

  • CF0 = (1,000)
  • CF1 = 882.62 & F01 = 1
  • CF2 = 250 & F02 = 1
  • CF3 = 15 & F03 = 1
  • CF4 = 5 & F04 = 1
  • I = 10.5%
  • [NPV] [CPT]
  • The NPV is $17.968
  • [IRR] [CPT]
  • The IRR will come as 12.10%
  • Project L
  • CF0 = (1,000)
  • CF1 = 0 & F01 = 1
  • CF2 = 260 & F02 = 1
  • CF3 = 420 & F03 = 1
  • CF4 = 732.87 & F04 = 1
  • I = 10.5%
  • [NPV] [CPT]
  • The NPV is $15.78
  • [IRR] [CPT]
  • The IRR will come as 11.03%
  • The better Project is Project S having a NPV of $17.968 and IRR of 12.10%

Learn more about IRR here brainly.com/question/7920964

#SPJ4

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The European union and the World trade organization  have trade policy as common.

<u>Explanation: </u>

World Trade Organization (WTO) comprises governments and border control territories that establish, implement, and enforce international trade rules. European Union and the individual EU Member States are members of WTO.

To make sure that rules-based global trade process, the WTO is involved. Despite the deadlock in negotiations, ways are being examined to upgrade WTO rules and tackle new international challenges.

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A producer conducts business ethically and receives high praise from most customers. The producer pays all of the required licen
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Answer:

Lack of continuing education

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The reason is that the company has not kept its knowledge updated related to the licenses clauses and as result we have a surprise of contract termination. So the company must be aware of the clauses and its likely implications on the company operations. Now in this case the company must consider the alternative option to counter this issue.

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4 years ago
The county determined it needed to prepare a budget amendment to reflect a decrease in charges for services of $100,000 and an i
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Answer:

Budgetary Budgetary Fund Balance will be debited $250,000

Explanation:

Hi, Budgetary Budgetary Fund Balance will be debited $250,000,

Expenditures are a cost for the balance ($150,000), and must be debited.

The charges for services are recorded as revenues or collections for the country, a decrease of these collection makes them a to be considered like an expenditure and be debited too. ($100,000)

So, mathematically speaking

$100,000+$150,000 =$250,000

Feel free to ask for more if needed or if you did not understand something.

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Nance Corporation’s December 31, 2017 balance sheet showed the following: 6% preferred stock, $20 par value, cumulative, 30,000
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se the following information for Jett Co. to answer the following question: 2015 2014 Sales 1,200 1,000 COGS 850 700 Operating E
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Net profit margin $120 / $1,200

Net profit margin= 0.1

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