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
adelina 88 [10]
3 years ago
7

Heap Corporation is considering an investment in a project that will have a two year life. The project will provide a 10% intern

al rate of return, and is expected to have a $40,000 cash inflow the first year and a $50,000 cash inflow in the second year. What investment is required in the project?
Business
1 answer:
guapka [62]3 years ago
5 0

Answer:

The Investment required is 77686

Explanation:

The required investment is the actual amount of the 2 inflows that we will receive in the future

Investment (Present Value) =∑A/ (1+r)ⁿ

A=cash inflows

r= internal rate of return

n= time

Investment=∑A/ (1+r)ⁿ

Investment= $40,000 /(1+0,10)¹ +$50,000 /(1+0,10)²

Investment=36364+41322

Investment=77686

You might be interested in
describe the two eligibility requirements to qualify for deducting losses generated from real estate activities.
Zolol [24]

Two exceptions to the special passive activity rule for real estate activities provide the whole or partial offset of real estate rental losses against active or portfolio income, even when the business is otherwise regarded as a passive activity.

<h3>Which rules regarding passive activities for rental revenue are exceptions?</h3>
  • You have a stake in the yearly commerce or economic activities.
  • During the current tax year or at least 2 of the 5 tax years prior, the rental property was utilized primarily in that trade or company.
<h3>Only real estate is subject to passive loss restrictions, right?</h3>

Generally speaking, the following actions can result in passive losses (and income): leasing of equipment. Rental property (though there are some exceptions) a farm or a sole proprietorship in which the taxpayer has no substantial interest.

<h3>How can passive income be balanced?</h3>

Selling off your rental properties will help you make up for your passive losses. You don't actually have to sell the property that's causing the losses to balance them effectively. Any passive income will be offset by losses.

Learn more about special passive activity rule: brainly.com/question/28137310

#SPJ4

7 0
1 year ago
Suppose that you have received $300 as a birthday gift. You can spend it today or you can put the money in a bank account for a
Bingel [31]
After one year you will be able to get 305 extra dollars then what you have put in hope this helps you
6 0
3 years ago
What is the principle of the law of supply?
seropon [69]

B. The higher the price, the larger the quantity produced.

6 0
3 years ago
Read 2 more answers
When making contingency estimates, the contractor should Select one: a. estimate the amount to mitigate high impact and probable
coldgirl [10]

Answer:

a. estimate the amount to mitigate high impact and probable issues.

Explanation:

In project management, a contractor can be defined as an individual or organization that temporarily undertakes a project in order to create a unique result, product, and service.

A contingency is an amount of money which is added to the initial or standard cost estimate so as to cover risk exposure and any uncertainty.

When making contingency estimates, the contractor should estimate the amount to mitigate high impact and probable issues.

As a result of uncertainties that are peculiar to everything in life, most especially projects undertaken, it is very important and necessary that the contractor should set aside an amount of money to mitigate or lessen any high impact such as dwindling prices, miscellaneous, faults, repairs and other probable issues that may arise in the process of execution.

6 0
3 years ago
Markland Manufacturing intends to increase capacity by overcoming a bottleneck operation by adding new equipment. Two vendors ha
Veseljchak [2.6K]

Answer:

Proposal A: 5,455 units

Proposal B: 5,770 units

Explanation:

The break-even point is the number of units required for the revenue to equal the total costs.

For proposal A:

Fixed Costs = $60,000

Variable Costs = $13 / unit

Selling Price = $24 / unit

(P-VC)*n-FC = 0\\(24-13)*n-60,000 = 0\\n=5,454.5\ units

For proposal B:

Fixed Costs = $75,000

Variable Costs = $11 / unit

Selling Price = $24 / unit

(P-VC)*n-FC = 0\\(24-11)*n-75,000 = 0\\n=5,769.2\ units

Rounding up to the next whole unit, the break-even points for proposal A and B, respectively, are 5,455 and 5,770 units.

3 0
3 years ago
Other questions:
  • a. The loss on the cash sale of equipment was $5,125 (details in b). b. Sold equipment costing $46,875, with accumulated depreci
    7·1 answer
  • The purchasing power of money and the price level vary: Group of answer choices inversely. directly during recessions, but inver
    7·1 answer
  • Anton Co. uses the perpetual inventory system and FIFO cost flow method. During the year, Anton purchased 400 units of inventory
    15·1 answer
  • If you put $700 in a savings account at an interest rate of 3 percent, how much money will you have in one year?
    9·1 answer
  • Swifty Corporation manufactures widgets. Bowden Company has approached Swifty with a proposal to sell the company widgets at a p
    15·1 answer
  • Question 10 of 10
    5·2 answers
  • When the price of ketchup rises by 15 percent, the demand for hot dogs falls by 1 percent. a. Calculate the cross-price elastici
    7·1 answer
  • PM Industries has two service departments (Administration and Maintenance) and two operating departments. Departmental costs bef
    11·1 answer
  • Assuming a company has no other funding sources other than debt and common equity, what is the difference between enterprise val
    9·1 answer
  • You have just been hired as the accountant for Fan-Tastic Sports Gear Inc., a wholesaler of sporting goods and apparel. The prev
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!