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
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

You might be interested in
The management of Brinkley Corporation is interested in using simulation to estimate the profit per unit for a new product. The
Furkat [3]

The calculated profit per unit for base-case, worst-case is, and best-case for the management of Brinkley corporation is:

  • $7
  • $3 per unit
  • $3 per unit

<h3>The Profit per unit for base-case:</h3>

45 - 1 1- 24 - 3 = $7

<h3>Profit per unit for worst case:</h3>

45 - 12 - 25 - 3 = $3 per unit

<h3>Profit per unit for best case:</h3>

45 - 10 - 20 - 3 = 12$ per unit

b. The mean profit per unit is given as $7.05

c. The reason the simulation approach is preferable is due to the fact that it can help to determine the probability of profit as a particular amount, unlike the what-if scenario analysis.

It can also create different scenarios for possible resources.

d. The probability of the fact that the profit per unit woul  be less than 5 is 9%

Read more on risk analysis here: brainly.com/question/6955504

5 0
2 years ago
Why do we practice making associations with simple and mundane problems and resources? Select all that apply.
Artyom0805 [142]

Answer:

E.  They are problems and resources that most people have experience with or can relate to.

Explanation:

  • Such problems and resources are most commonly found in day to day lives. People can easily relate to them as they are simple and common in the workplace.
  • They are associated with the resources of particular problems. This making them a subject of practice it becomes easy to use them for teaching and other purposes. Such as enlightenment and giving advice.
4 0
2 years ago
Stores such as T. J. Maxx, Burlington Coat Factory, and Marshalls buy manufacturers' seconds, overruns, returns, and off-season
Rama09 [41]

Answer: off price retailers

Explanation:  In simple words, it refers to the retailers that sells high quality products at relatively lower prices than market. The key to their business structure is the discount they offer as the majority of product they sell are of second hand quality or are off seasoned.

    They procure material directly from the suppliers in the form of scrap etc and then sells it to retailer at heavy discounts. Hence from the above we can conclude that the correct answer is off price retailers.

4 0
3 years ago
Jason is shopping for a new car. He completes new credit applications at four different dealerships. Will this affect his credit
trasher [3.6K]

Applying for a loan in each of the dealerships he visited will have negative consequences on his credit score.

The credit score is a term to refer to the score that people have toward the financial system. The credit score is a kind of business card for each person regarding their financial life.

One of the most common mistakes people make is when they make multiple credit applications when they intend to buy something because this is a bad practice for their credit score.

For example, if Jason completed credit applications in four different dealers, his score may drop because the entities that are going to lend him the money consider this activity as something negative.

In addition, people who apply for loans in different entities are generally forced to do so because they are denied the possibility of credit, that is, they have an unfavorable history to access a loan.

Learn more in: brainly.com/question/16663880

8 0
3 years ago
Suppose that a firm operating in perfectly competitive market sells 50 units of output. Its total revenues from the sale are $50
jekas [21]

Answer:

ii) Average revenue equals $10

Explanation:

A perfectly competitive market is where there are many buyers and sellers of homogenous goods. They are price takers. Price = marginal cost = marginal revenue = average revenue

Total revenue = price × quantity sold

$500 = price × 50

Price = $10

Average revenue = Total revenue / output

$500 / 50 = $10

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
  • Decisions by the coffee collective regarding which type of organic dog biscuit to offer is an example of which element of retail
    7·1 answer
  • Ty lives in an apartment building and gets a benefit from playing his stereo. Olivia, who lives next door to Ty and often loses
    14·1 answer
  • Suppose that there are two industries, A and B. There are five firms in industry A with sales at $5 million, $2 million, $1 mill
    13·1 answer
  • When considering interaction between companies and customers online, _______ is the attention that social media attracts while _
    6·1 answer
  • Which statement best describes the distribution of the rate of natural increase?
    15·1 answer
  • A major airline sells an aggressively low priced ticket compared to a new low-fare airline, which is trying to enter the market.
    15·2 answers
  • How can a manager also be a leader
    15·2 answers
  • Lunderville Inc. bases its selling and administrative expense budget on budgeted unit sales. The sales budget shows 3,200 units
    13·1 answer
  • What style of leadership is grounded in the exchange relationship between the leader and the follower
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!