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mario62 [17]
3 years ago
13

Happy Frog Inc. is analyzing a project with the following cash flows: Year Cash Flow 0 -$762,000 1 $300,000 2 $-550,000 3 $660,0

00 4 $440,000 This project has cash flows. Happy Frog Inc.’s WACC is 8.00%. Calculate this project’s modified internal rate of return (MIRR).
Business
1 answer:
Lelechka [254]3 years ago
6 0

Answer:

Happy Frog Inc.

Modified Internal Rate of Return (MIRR) = (Future value of positive cash flows / present value of negative cash flows) (1/n) – 1

= ($1,400,000 /-$1,198,700) (1/5) - 1

= -1.167932 x -0.8

= 0.934

MIRR = 9.34%

Explanation:

a) Future Value of positive cash flows:

1           $300,000

3          $660,000

4          $440,000

Total $1,400,000

b) Present value of negative cash flows:

0         -$762,000

2         -$436,700    ($550,000 x 0.794)

Total -$1,198,700

c) The Modified Internal Rate of Return for Happy Frog Inc. is greater than its Weighted Average Cost of Capital.  Therefore, the project looks very promising and should be accepted.

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Answer:

$525,000

Explanation:

The amount to be recognized as research and development expense for the year includes  the cost of research and development services performed by Key Corp. for Orr, the cost incurred on testing of pre-production prototypes and models as well as the cost of testing in search for new products or process alternatives,

In other words, all costs incurred would be expensed since no of them met the capitalization criteria as per  generally acceptable accounting principles

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Cardinal Health bonds have an annual coupon rate of 3.4 percent and a par value of $1,000 and will mature in 7 years. If you req
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  • The answer is "$716.56", and the further calculation can be defined as follows:
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Annual coupon to be paid\bold{= \$1000 \times 3.4\%= \$1000 \times \frac{3.4}{100}  = \$34}

years = 7

Calculating the bond price:

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So, the final answer is "$716.56".

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brainly.com/question/15570099

5 0
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Suppose the consumption function is c = $200 + 0.85yd. if disposable income is $400, consumption is
alexira [117]
Given the consumption equation of c= 200 + 0.85yd, and the disposable income of $400, then, then we would get the consumption by substituting the given to the equation:c= 200 + 0.85ydc= 200 + 0.85(400)c= 200 + 340c= 540Therefore, the consumption is $540.
8 0
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Handcrafts & Hobbies Store agrees to hire Iliana for one year at a salary of $600 per week. When Handcrafts & Hobbies ca
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Explanation:

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Indirect costs incurred in a manufacturing environment that cannot be traced directly to a product are treated as a.period costs
Dima020 [189]

Answer:

Indirect costs incurred in a manufacturing environment that cannot be traced directly to a product are treated as Product costs and expenses when the goods are sold, Option D.

Explanation:

Indirect costs are also manufacturing overheads which cannot be directly put on the product but they have to be allocated in some way. So, these are treated as 'product costs' and 'expenses' when the goods are sold. They are not period costs as per Option A and option C. Option B which says that it is product costs when incurred, which is also incorrect.

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