When buying component parts, risk does not include:?

A firm purchased $120,000 worth of light general-purpose trucks. The operations of the trucks lead to annual income of $60,000 f

Setler [38]

The before-tax IRR is 37.93%

The after-tax IRR is 19.32%

The internal rate of return (IRR) is defined as the return rate on a project investment project over a periodic lifespan.

It is also referred to as the net present value of an investment project which is zero. It can be expressed by using the formula:

$\mathbf{0= NPV \sum \limits ^{T}_{t=1} \dfrac{C_t}{(1+1RR)^t}- C_o}$

where;

$\mathbf{C_t}$ = net cash inflow for a time period (t)
$\mathbf{C_o=}$ Total initial investment cost

For the before-tax IRR:

The cash outflow = $120000

Cash Inflow for the first three years = $60000

Cash inflow for the fourth year = $60000 + $20000 = $80000

∴

Using the above formula, we have:

$\mathbf{0 = \dfrac{60000}{(1+r)^1}+ \dfrac{60000}{(1+r)^2}+ \dfrac{60000}{(1+r)^3}+ \dfrac{80000}{(1+r)^4}}$

By solving the above equation:

r = 37.93%

For the after-tax IRR:

The cash outflow = $120000

Recall that:

Cash Inflow = Cash inflow × Tax rate

∴

For the first three years; the cash inflow is:

$\mathbf{=60000 -(60000\times 0.3) } \\ \\ \mathbf{ = 60000 -18000} \\ \\ \mathbf{ = 42000}$

For the fourth year, the cash inflow is

$\mathbf{=80000 -(60000\times 0.3) } \\ \\ \mathbf{ = 80000 -18000} \\ \\ \mathbf{ = 62000}$

Using the above IRR formula:

$\mathbf{0 = \dfrac{42000}{(1+r)^1}+ \dfrac{42000}{(1+r)^2}+ \dfrac{42000}{(1+r)^3}+ \dfrac{62000}{(1+r)^4}}$

By solving the above equation:

r = 19.32%

Learn more about the internal rate of return (IRR) here:

brainly.com/question/24301559

5 0

2 years ago

A tax meets the standard of efficiency if it generates enough revenue to pay for the public goods and services provided by the g

Veseljchak [2.6K]

Answer:

(B) False.

Explanation:

There are other ways to measure the efficiency of a tax system. It is not to generate enough revenue to pay for the public goods and services provided by the government, but just to meet the primary needs of the society.

An efficient tax system must not be complicated, and easy to pay by all. There must be transparency as how the people pay and the tax money is spent by the government.

8 0

3 years ago

According to a survey reported in the Business Week, 30% of adults in the U.S. said that the cell phone is the invention that th

zalisa [80]

Answer:

Explanation:

To calculate, the binomial distribution formula can be applied

P(X)= nCx * Px * (1 - P)^(n - x)

Random sample of 6 adults:

P(X≥3) = P(X=3) + P(X=4) + P(X=5) + P(X=6)

(6 C 3)0.30^3 * 0.7(6-3) + (6 C 4)0.30^4* 0.7^(6-4) +(6 C 5)0.30^5* 0.7^(6-5) + (6 C 6)0.30^6* 0.7^(6-6) =

0.1852+0.0595+0.0102+0.0007

= 0.2556

[6 C 3 = 6!/(6-3)!3! = 1*2*3*4*5*6/1*2*3*1*2*3, and to calculate others apply to this formula]

5 0

3 years ago

Explain the "Rule of 9 " as it pertains to marketing.

Mnenie [13.5K]

Answer:

When measuring burns in adults, the rule of nines assesses the percentage of burn and is used to help guide treatment decisions including fluid resuscitation and becomes part of the guidelines to determine transfer to a burn unit.

Explanation:

The transfer to the burn unit.

5 0

3 years ago

As a group, create a team charter for governing your future CLC activities. The charter should include plans for team building,

Over [174]

Answer:

First of all to create an effective team charter as road way for your group or team, for governing CLC activities the following needs to be considered

• Who are the people involved

• Who is a team leader and who resolves problems

• How long does it take to create a charter

• How long does the charter last

• Creating a Team purpose and mission to others in the organization

Explanation:

Now the first Method of having a good charter team usually involves the background 

When Creating a charter, you start from the initial stage or point. Questions would be asked on what areas of focus is this charting heading towards. Like what types of project, it would get involved in on the long /short term.

Questions can be asked as the following bellow, 

• Who is a team leader 

• What are the roles of each stakeholder in the team 

The second Method or role after having a startup background is now to focus on the deeper aspects of the charter like 

• How is success evaluated or measured 

• Having a lay down principles to guide the team or group in the right track 

• Define roles each team member would play in terms of the success of the company. 

• Have a mission and vision statement on how the company would grow on the long term 

 

The third Method after the Mission and vision statement is created for a successful team charter, it’s the roles and responsibility of team members. For this stage roles and responsibilities would be assigned to each group in the charter by defining the following terms

• Assign who is doing this for whom and the purpose 

• Having asses on all areas needed for the group to succeed 

• Ensure all Team members voice are known, expressed to their best of abilities. 

• Create what is called RACI (Roles, Accountable, consulted, Informed) roles and responsibilities matrix 

The Fourth Method of a successful team charter is Budget and Resources 

Once roles and responsibility have been established, the team/Group can access the budget and resources to carry out the tasked at hand. 

 

The Fifth Method of a successful team after budget and resources are, 

The internal checks, balance and reviews. 

The Team Members of the charter should decide, also, whether team goals assigned to members will be shown in the team members’ annual reviews. A good example of a reliable system is the SMART goal method The goals should be:

• Specific 

• Measurable 

• Achievable 

• Realistic 

• Time-based 

 

5 0

3 years ago