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
agasfer [191]
3 years ago
11

Casa Del Sol Property Development Company is refurbishing a 200-unit condominium complex at a cost of $1,875,000. It expects tha

t this will lead to expected annual cash flows of $415,350 for the next seven years. What internal rate of return can the firm earn from this project? (Do not round intermediate computations
Business
1 answer:
Elis [28]3 years ago
4 0

Answer:

In order to find IRR we have to set the present value of all cash flows to 0,

IRR is the rate at which if we discount the payments the NPV (net present value) will be 0

-1875000+

415,350/(1+IRR)

415,350/(1+IRR)^2

415,350/(1+IRR)^3

415,350/(1+IRR)^4

415,350/(1+IRR)^5

415,350/(1+IRR)^6

415,350/(1+IRR)^7

Now we can use trial and error to see at what rate will the npv be

IRR= 12.35%

Another simple way of doing is using the cash flow function of a financial calculator and input these values.

CF0=1875000

C01=415,350

C02=415,350

C03=415,350

C04=415,350

C05=415,350

C06=415,350

C07=415,350

Explanation:

You might be interested in
Consider the following pre-merger information about a bidding firm (Firm B) and a target firm (Firm T). Assume that both firms h
anastassius [24]

The share price for the merged firm is $48.09. Therefore, the correct option is C

<u>Explanation:</u>

(a)-Net Present Value (NPV)

Net Present Value (NPV) = Market Value of the Target Firm + synergistic benefit – Acquisition Value

= [3600 Shares multiply $19] plus $16700 minus [3600 Shares multiply $21]

= $68400 plus 16700 minus 75600

= $9500

“Net Present Value (NPV) = $9500  

(b) Share Price

Share price = [Market Value of the Bidding firm + NPV] / Number of shares of the Bidding firm

= [( 8700Shares multiply $47) plus $9500] / 8700 Shares

= [$408900 + 9500] / 8700 Shares

= $48.09 per share

“Share Price = $48.09 per share”

4 0
3 years ago
Which situation best Illustrates the effects of inflation
Vitek1552 [10]

Answer:

creo que son 600000 pero no estoy segura busca en otro sitio

8 0
3 years ago
Read 2 more answers
What effect did the conquest of constantinople have in the ottoman empire and the spread of islam
Alexeev081 [22]

Answer:

The conquest of Constantinople by the Ottomans marked the end of the Byzantine Empire. It also significantly weakened the position of the Orthodox church compared to the Catholic church.

Islam was the official religion of the Ottoman Empire. The highest position in Islam, caliphate, was claimed by the sultan, after the defeat of the Mamluks which was established as Ottoman Caliphate. The Sultan was to be a devout Muslim and was given the literal authority of the Caliph.

The fall of the city removed what was once a powerful defense for Christian Europe against Muslim invasion, allowing for uninterrupted Ottoman expansion into eastern Europe.

Hope this helps!

(btw im muslim:)

7 0
3 years ago
Read 2 more answers
24. On January 15, 2015, the accounts receivable balance was $7,000 and the balance in the allowance for doubtful accounts was $
Sati [7]

Answer:

The net realizable value is $7,000-$700= $6,300

The reason for this is that $700 was the the allowance for doubtful accounts and this is the amount that company does not expect to receive therefore it is subtracted from the total receivables to find the net realizable value.

Un collectible amount is $200 which is less than $700 so it will be subtracted from 700 and then the doubtful accounts balance will be $500

Explanation:

5 0
4 years ago
What is the simple interest earned on $2200 at a 4.6% interest rate for 3 years? Round your answer to the nearest cent
Vlad1618 [11]
It would be $303.60 simple interest earned
5 0
3 years ago
Other questions:
  • Alexis, a customer service supervisor at ABC Airlines, typically seeks the full participation of her team members when planning,
    8·2 answers
  • Which of the following is true of a job-based pay structure? It reinforces a top-down decision-making process. It discourages pr
    12·1 answer
  • Bruce and lou, who sit next to each other, distract each other in the classroom. the teacher has tried rewarding them for approp
    9·1 answer
  • Which of the following statements describes a recurring theme about today's ecological environment?
    12·1 answer
  • What's two examples of a direct competition?​
    13·1 answer
  • You are a new project manager who has been entrusted with a project. The project has entered the Execution phase, and you as the
    13·1 answer
  • Balthazar Corporation has total assets of 582, total equity of 269, and a return on equity of 13.98%. The ROA for Balthazar is__
    12·1 answer
  • In 2010, Roso Carlson Company had net credit sales of $750,000. On January 1, 2010, Allowance for Doubtful Accounts had a credit
    5·1 answer
  • What happens if a monopolist increases the price of a good?
    15·1 answer
  • Plant assets are recorded at cost, which includes all expenditures necessary to get the asset in place and ready for use. All of
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!