1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Andreyy89
1 year ago
5

Blue Spruce, Inc. is considering purchasing equipment costing $72000 with a 6-year useful life. The equipment will provide annua

l cost savings of $17514 and will be depreciated straight-line over its useful life with no salvage value. Blue Spruce requires a 10% rate of return. Present Value of an Annuity of 1 Period8%9d.6234.4864.3554.2314.1113.784What is the approximate internal rate of return for this investment
Business
1 answer:
Stella [2.4K]1 year ago
6 0

The approximate internal rate of return for this investment is $0.054.

<h3><u>What is rate of return?</u></h3>
  • The net gain or loss of an investment over a given time period, stated as a percentage of the investment's starting cost, is known as a rate of return (RoR).
  • You determine the percentage change from the start of the period to the end when computing the rate of return.
  • Any type of investment instrument, including real estate, bonds, equities, and fine art, can be subject to a rate of return (RoR).

Any asset can be used with the RoR as long as it is purchased once and generates cash flow at some point in the future. The attractiveness of various investments can be determined, in part, by comparing their historical rates of return to those of comparable assets.

We have, (Net Annual cash inflow x PV of an Annuity of 1 at 10%) - Initial Investment = Net present value (find closest to zero))

($17,514 x 4.111) = $72000.054 - $72,000 = $0.054 (closest to zero).

Know more about rate of return with the help of the given link:

brainly.com/question/24232401

#SPJ4

You might be interested in
Student Emergency Financial Services, Inc., which makes small loans to college students, offers to lend $550. The borrower is re
Step2247 [10]

Answer:

Interest per week=17.4%

Explanation:

Using equation

F=P(1+i)^n

where n is the time period,P is the present value and F is the future value

Given F=550,P=42 and n=16 solving equation we will get

i=17.4%

7 0
3 years ago
Employers can try to overcome the moral-hazard problem involving their employees by:
BartSMP [9]

Answer:

Option D             

Explanation:

In simple words, moral hazard refers to the situation when an individual do not act with full responsibility due to the fact that any loss from their behavior will be borne by some third party.

Thus, by assessing the employees before employment by a test will help to decide the employer if the individual is worthy of the job or not. Thus, efficient employees will be selected and less mistakes will occur.    

5 0
3 years ago
To enable remarketing in google analytics, what must first be enabled?
WARRIOR [948]

Before you are able to enable remarketing in Google analytics, you must first have Edit permission for the content you are wanting to remarket. By changing your remarketing in Google analytics you are able to remarket and brand your content to new and old customers. By doing this, you are able to use different properties within Google analytics to market your brand and spread awareness to customers.

5 0
3 years ago
In a Team environment, a Coordinator is?
ValentinkaMS [17]
Yes the answer is ymb=x your welcome
8 0
3 years ago
People who make goods and services are called _____ . <br> consumers<br> producers<br> investors
Aneli [31]
People who make goods and services are called PRODUCERS.

They are called producers because they produce the goods and services needed by the consumers.

Consumers are people who requires the goods and services provided by the producers.


8 0
3 years ago
Read 2 more answers
Other questions:
  • A company receives money for the sale of its stock
    5·1 answer
  • Some reasons that counselors may not be interested in working with older adults are ________.
    8·1 answer
  • Adams Trophies makes and sells trophies it distributes to little league ballplayers. The company normally produces and sells bet
    5·1 answer
  • U.S. sugar import quotas have existed for more than 50 years and preserve about half of the U.S. sugar market for domestic produ
    9·1 answer
  • In the long run a company that produces and sells kayaks incurs total costs of $15,000 when output is 30 kayaks and $20,000 when
    12·1 answer
  • The next dividend payment by Savitz, Inc., will be $2.34 per share. The dividends are anticipated to maintain a growth rate of 4
    7·1 answer
  • For each of the statements below, use the dropdown box to select the response that completes the sentence correctly. Knowledge C
    5·1 answer
  • Joe verbally contracts with Delia to sell his farm to Delia. They do not sign a contract, but Delia takes possession, makes a do
    6·1 answer
  • Question 2 of 20 what was the impact of mao zedong's great leap forward in china? o a. mao's oppression of urban workers allowed
    14·1 answer
  • Career development is a lifelong process in which we become aware of, interested in, knowledgeable about, and skilled in a caree
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!