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Greeley [361]
1 year ago
9

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]1 year 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).

To know more about internal rate of return, here

brainly.com/question/13373396

#SPJ4

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Problem-solving is an interpersonal ability to take corrective action in a problem situation in order to meet desired objectives
julsineya [31]

Answer:

True.

Explanation:

Problem-solving is an interpersonal ability to take corrective action in a problem situation in order to meet desired objectives.

The problem-solving skills is an essential and very important attribute that is meant to be possessed by each and every leader. A problem-solving skill is one of the most important part of conceptual skills and it involves the use of an individual's interpersonal or cognitive ability to take corrective action when faced with a problematic situation in order to meet the desired or set objectives in an organization or team. There are basically four (4) essential steps to solving a problem and these are;

1. You should identify the problem.

2. Design an alternative solution to the problem.

3. Evaluate the solutions and choose the best among the solutions.

4. Execute the solution deemed to be best and most effective.

8 0
3 years ago
Innovative Products reported net income of $226,000. Beginning and ending inventory balances were $48,000 and $49,000, respectiv
Maslowich

Answer:

The correct answer is $220,500.

Explanation:

According to the scenario, the computation of the given data are as follows:

We can calculate the net operating cash flow by using following formula:

Net operating cash flow = Net income - ( Ending - Beginning Inventory) - ( Beginning - ending in AP)

By putting the value, we get

= $226,000 - ( $49,000 - $48,000 ) - ( $39,000 - $34,500)

= $226,000 - $1,000 - $4,500

= $220,500

4 0
3 years ago
The process of predicting what the market would pay for a company's investments and bonds is .
sweet-ann [11.9K]

The process of predicting what the market would pay for a company's investments and bonds is called a <u>valuation</u>.

Valuation is a quantitative process which determines what the market would pay for a company or its assets like investments and bonds. They may be valued on an absolute basis or on a relative basis compared to similar companies or assets. An analyst does this by placing value on many metrics.

Methods of valuation may differ and may provide different answers. Some methods that may be employed are Fundamental analysis, capital asset pricing model (CAPM) and dividend discount model (DDM).

<u>The other options are incorrect because:</u>

  • An appraisal is just an estimation of the market value of a company or its assets and is only used as a pricing guide.
  • Financial management is the practice of planning, obtaining, managing and administering funds in a business.
  • Assessment is the act of judging the value, amount or importance of a thing.

You can learn more about bond values at

brainly.com/question/26376004

#SPJ4

<u>The complete question is given below:</u>

" the process of predicting what the market would pay for a company's investments and bonds is .

  • Valuation
  • Appraisal
  • Financial Management
  • Assessment    "

4 0
1 year ago
What can research into industry information help you identify
77julia77 [94]

Answer:

Marketing strategies, prices

Explanation:

It can help you to understand the product you're selling and what audience you are marketing to.

4 0
3 years ago
If Texia specializes in food, it can produce 1,000 units of food and 0 units of clothing this year. Ifit specializes in clothing
irga5000 [103]

Answer:(B) Texia; Urbania

Explanation:Production possibilities frontiers or production possibility curve is a term used to describe the maximum output that an organisation can achieve if it efficiently uses all available resources to produce a product mix containing two products.

Below is the

Clothing Opportunity Cost

Food given out/Clothing gained = Texia =( -(10/5) = -2 < Urbania = -(6/2) = -3)

TEXIA WILL BE MORE EFFICIENT IN GIVING URBANIA CLOTHES.

Food Opportunity Cost=

Clothing given out/Food gained = Texia = (-(5/10) = -1/2 > Urbania = -(2/6) = -1/3)

URBANIA WILL GIVE FOOD TO TEXIA.

5 0
2 years ago
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