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2 years ago

What is the irr of an investment that costs $18,500 and pays $5,250 a year for 5 years?

Business

1 answer:

saveliy_v [14]2 years ago

6 0

The Internal rate of return (IRR) of an investment is found to be 13%.

<h3>What is Internal rate of return (IRR)?</h3>

The internal rate of return (IRR) is a financial analysis metric used to estimate the profitability of possible investments.

In a discounted cash flow analysis, IRR is a discount rate that renders the net present value (NPV) among all cash flows equal to zero.
IRR calculations employ the same method as NPV calculations.
Keep in mind that the IRR is not the project's actual dollar value.
The annual return is what brings the NPV to zero.

Now, according to the question;

Total investment = $18,500.

Returns = $5,250/year

Time = 5 years

Use the formula for calculation of IRR value.

$18,500 = $5,250 {[1 - 1/(1 + IRR)5] / IRR}

Simplyfying,

IRR = 12.92%

Therefore, the internal rate of returns are calculated as 13% (approximately).

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You open a savings account with a 0.5% per year nominal interest rate, and the economy experiences 3% per year inflation. a. Wha

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Answer:

a. The nominal interest rate is 0.5%, and the real interest rate is -2.5%.

b. The purchasing power of money in the account will reduce.

Explanation:

a. What is the nominal and real annual interest rate on the account? The nominal interest rate is %, and the real interest rate is %.

From the question, we have:

Nominal interest rate = 0.5%

Inflation rate = 3%

In economics, the real is interest rate is calculated as follows:

Real interest rate = Nominal interest rate - Inflation rate = 0.5% - 3% = -2.5%

Therefore, the nominal interest rate is 0.5%, and the real interest rate is -2.5%.

b. What will happen to the purchasing power of the money you place in the account over time? The purchasing power of money in the account will

From the question, the interest rate attached to the savings account is a nominal interest rate. Since the nominal interest rate, unlike the real interest rate, is an interest rate that is not adjusted for inflation, the purchasing power of money in the account will reduce.

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3 years ago

john’s friend, michael, just got fired from his job as a server at a local restaurant. after michael is done telling his story a

puteri [66]

In a case whereby john’s friend, Michael, just got fired from his job as a server at a local restaurant and narrated the issue to John, and John says "so, your boss took the customer’s words over yours, then John means that his boss do not trust him.

<h3>What is the trust between the employee and employer?</h3>

The trust between the employee and employer can be seen as one that do make the relationship between the employer as well as the employee to be strong.

It should be noted that the Trust in the workplace implies that there is a culture of honesty as well as psychological safety which exist between the employee as well as the employer, hence in the case whereby the employer is acting against the employee as a result of the comments from the customer without any investigation implies that there is no trust between them which is not adviceable.

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1 year ago

Companies like my gym, which seek to do business in new markets for manufacturing and/or marketing purposes, have many potent

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They have many potential <u>Entry Modes</u> at their disposal.

<h3>What is Entry Mode?</h3>

Foreign market entrance modes in international trade are the methods through which a corporation can expand its services into a non-domestic market.

Market entrance options are classified into two types: equity and non-equity. Export and commercial agreements are examples of non-equity mechanisms. Joint ventures and totally owned subsidiaries are examples of equity models. Different entrance mechanisms differ in three key ways:

The level of danger they pose.
Control and dedication to the resources required.
The promised return on investment

Therefore, Companies like my gym, which seek to do business in new markets for manufacturing and/or marketing purposes, have many potential <u>Entry Modes</u> at their disposal.

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2 years ago

10 percent partner in a partnership that incurred a $4 million business loss this year. Jahlil has no other business activities.

sashaice [31]

Answer:

$250,000 and $500,000

Explanation:

According to the tax laws there is annual limit on Loss deductions relating the amount of business loss that can be deducted in a year.

The law states that single or individual tax payers can deduct nothing more than $250,000 while married taxpayers who are filing jointly can deduct up to $500,000 per year of their business losses.

Therefore, if Jahlil is single the amount of partnership loss he can deduct is $250,000 but if he is married filing jointly, he can deduct $500,000

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3 years ago

Owens Corporation uses a process costing system. For March, the beginning work in process inventory consisted of 60,000 units th

Black_prince [1.1K]

Answer:

C) $4.02

Explanation:

The computation of cost per equivalent unit for processing cost for March is shown below:-

As we know that

Beginning work in process inventory units + Units started into production = Ending work in process inventory units + Units completed and transferred out

60,000 + 190,000 = Units in ending work in process inventory + 200,000

Units in ending work in process inventory is

= 60,000 + 190,000 - 200,000

= 50,000

To complete the beginning work in process inventory:-

Processing: 24,000

60,000 units ×(100% - 60%) a

Units started and completed 140,000

(200,000 − 60,000) b

Ending work in process inventory Processing:

50,000 units × 20% c 10,000

Equivalent units of production 174,000

Cost added throughout the period e 7,00,000

Equivalent units of production f 174,000

Cost per equivalent unit e ÷ f $4.02

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3 years ago