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Yakvenalex [24]
3 years ago
8

Krauth Company purchased a machine for $162,600. The machine has a life of twelve years with no salvage value. It is expected th

at the machine will generate annual net cash inflows of $30,000 per year over its useful life. Assume Krauth Company employs a cost of capital of 10% on all capital investment projects. The internal rate of return (IRR) on the machine is closest to:
Business
1 answer:
valentinak56 [21]3 years ago
6 0

Answer:

The internal rate of return (IRR) on the machine is closest to 15%

Explanation:

We can use excel to calculate IRR as file attached. And IRR of this project is 15%

Or we can calculate NPV of this project with discount rate to make NPV = 0

NPV = PV of investment + PV of all cash flow in 12 years = 0

PV of investment = $162,600

PV of cashflow = 30,000/(1+ IRR)^ year = 30,000/(1+ IRR)^1 + 30,000/(1+ IRR)^2 +…… +30,000/(1+ IRR)^12

Download xlsx
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Norbert Inc. delivered goods and services during December. Payment is expected during the first week of January. The related adj
Vsevolod [243]

Answer:

The correct word for the blank spaces are: asset; revenue.

Explanation:

By delivering goods expecting payment at a later date, Norbert Inc. is increasing its <em>accounts receivable</em>. This type of profit takes place when goods or services are provided in credit and the payment is set in the future. In the example, according to the Generally Accepted Accounting Principles (GAAP), the <em>accounts receivable must be debited to an asset account and credited to a revenue account</em>.

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3 years ago
The Cook Corporation has two divisions--East and West. The divisions have the following revenues and expenses: East West Sales $
Ainat [17]

Answer:

The correct answer is loss of $155,000.

Explanation:

According to the scenario, computation of the given data are as follow:-

West division’s net operating income if it’s continue = ($15,000 - $75,000)

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We can calculate the net operating income if west discontinue by using following formula:-

West division’s net operating income if it’s discontinue = Net Operating Income - Allocated Common Corporate Cost

= ($15,000 - 170,000)

= -$155,000  (Negative shows loss).

Hence, Loss of $155,000.

5 0
3 years ago
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Hermione is learning about computer networks as she pursues her degree in information technology. since she is planning to work
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Tim is worried about online content his ten-year-old son might be accessing. Which devices can Tim use to monitor his son’s onli
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Which of the following describes a project and development team?A. The team is responsible for making goods or doing services.B.
NikAS [45]

Answer:

The correct answer is B. They work to solve a particular problem.

Explanation:

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