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Andreyy89
3 years ago
8

Bau Long-Haul, Inc., is considering the purchase of a tractor-trailer that would cost $283,215, would have a useful life of 7 ye

ars, and would have no salvage value. The tractor-trailer would be used in the company's hauling business, resulting in additional net cash inflows of $85,500 per year. The internal rate of return on the investment in the tractor-trailer is closest to (Ignore income taxes.):
Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using the tables provided.

Garrison 16e Rechecks 2017-11-11

Multiple Choice

23%

16%

19%

14%
Business
1 answer:
Anarel [89]3 years ago
8 0

Answer:

IRR is 23%

Explanation:

We must find the IRR which, when applied to the formula (attached), is equal to zero:.

As we can see, if we apply a rate (r) of 23%, the result of the formula will be zero. Consequently, this is the value of the IRR.

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Tri-State Mill uses a special sander to finish lumber. Data on the sander and its usage follow. Cost Driver Rate Cost Driver Vol
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Answer and Explanation:

The computation of the unused resource capacity in energy and repairs for Tri-State Mill. is shown below;

For energy

= $6,900 - 6,000 × $0.90

= $6,900 - $5,400

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For repairs

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= $2,400

Hence, the unused resource capacity in energy and repairs for Tri-State Mill. is $1,500 and $2,400 respectively

7 0
3 years ago
Benz Company is considering the purchase of a machine that costs $100,000, has a useful life of 18 years, and no salvage value.
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Answer:

B. $14,600

Explanation:

The annual cash inflows associated with the machine can be found by the following expression, where 'r' is the company's discount rate of 12% and 'n' is the useful life of the equipment of 18 years:

-investment+ X*\frac{(1 - (1 + r)^{-n})}{r} =NPV\\\\-\$100,000 + X*\frac{(1 - (1 + r)^{-n})}{r} =\$5,850\\-\$100,000 + X*\frac{(1 - (1 + 0.12)^{-18})}{0.12} =\$5,850\\X=\frac{\$105,850}{7.25} \\X=\$14,600

Annual cash inflows are $14,600.

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List at least Two functional digital wallet
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Chocoheaven processes cocoa beans into cocoa powder at a processing cost of $ 10,100 per batch. Chocoheaven can sell the cocoa p
sp2606 [1]

Answer:

No, it is not the right decision. The best decision that will bring maximum profit to the company is to sell chocolate syrup.

Explanation:

Profit = Sales revenue - Processing Cost

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