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DedPeter [7]
3 years ago
14

Project X1 Project X2 Initial investment $ (80,000 ) $ (120,000 ) Expected net cash flows in year: 1 25,000 60,000 2 35,500 50,0

00 3 60,500 40,000 Compute the internal rate of return for each of the projects using excel functions. (Round your answers to 2 decimal places.)
Business
1 answer:
nirvana33 [79]3 years ago
4 0

Answer:

For project X1 : IRR = 20.34%

For Project X2 : IRR = 12.99%

Explanation:

The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.

The IRR can be calculated using a financial calculator.

For project X1 :

Cash flow in year 0 = $ (80,000 )

Cash flow for year 1 = 25,000

Cash flow in year 2 = 35,500

Cash flow in year 3 = 60,500

IRR = 20.34%

For Project X2 :

Cash flow in year 0 = $(120,000 )

Cash flow in year 1 = 60,000

Cash flow in year 2 = 50,000

Cash flow in year 3 = 40,000

IRR = 12.99%

To find the IRR using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.

I hope my answer helps you

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Lexington Company engaged in the following transactions during Year 1, its first year in operation: (Assume all transactions are
worty [1.4K]

Answer:

Retained Earnings Balance at end of Year 1 =  $360

Explanation:

First we need to determine the profit/loss for the year as part of the retained earnings calculation.

Lexington Company

Income Statement for the year ended - Year 1

Revenue Earned                                                $3,200

Less Expenses                                                  ($2,420)

Net Income / (Loss)                                               $780

Then we calculate the Retained Earnings Balance

Retained Earnings Statement

Beginning Retained Earnings Balance                  $ 0

Add Profit earned during the year                      $780

Less Dividends                                                   ($420)

Ending Retained Earnings Balance                    $360

5 0
3 years ago
An individual buys stock at $40 per share. Many years later, the individual dies when the market value is $60. The estate distri
marissa [1.9K]

Answer:

$60

Explanation:

An individual buys stock at $40 per share. Many years later, the individual dies when the market value is $60. The estate distributes the shares to a beneficiary when the stock is worth $70. Therefore the cost basis to the beneficiary is

The cost basis by definition is usually equal to the fair market value of the property or asset at the time of the decedent's death or when the actual transfer of assets was made.

However for the purpose to be served to reduce the tax due on the inheritance, we have chosen to opt for the fair market value of the property or asset at the time of the decedent's death which is $60

3 0
3 years ago
AB Builders, Inc., has 16-year bonds outstanding with a par value of $2,000 and a quoted price of 99.727. The bonds pay interest
galben [10]

Answer:

6.54%

Explanation:

Face Value = $2,000

Current Price = 2000 x 99.727% =  1994.54

YTM = 6.56%

We can find the coupon rate by a simple formula

Coupon Rate = (Interest / Face value) x 100

We need to find interest first in order to find coupon rate

YTM = Interest / Current price

6.56% x 1994.54 = Interest

130.84 = Interest

Coupon Rate = (130.84 / 2000) x 100

Coupon Rate = 6.54%

6 0
3 years ago
Jillian wants to plan her finances because she wants to create and maintain her tax and credit history. She also wants to chart
gladu [14]

The correct answer is; October 1st and September 30th.

Further Explanation:

There are approximately 3 types of fiscal years. They are;

  1. Business
  2. Federal
  3. Non-profit

The federal fiscal year always starts on October 1st and will end on September 30th the following year. These are divided into four quarters each year. This will cover a 12 month calendar year.

A fiscal year can contain 365 or 366 days depending if there is a leap year. This is used as a starting place to start commencing your record keeping in order and when to conclude for the year.

When keeping financial records numerous things needs to be kept for the following year. Some of the things that needs to be kept are; precise records, receipts, contracts, check stubs, and the budget used.

Learn more about the fiscal year at brainly.com/question/13648773

#LearnwithBrainly

7 0
3 years ago
what is nbetter fender gibson or danelectro guitars. (in your opinion). I ALREADY HAVE MINE DANELECTRO ALL THE WAY.
Nadusha1986 [10]

Answer:

Danelectro Guitars

Explanation:

They are just cool.

5 0
3 years ago
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