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Lemur [1.5K]
3 years ago
6

Tennessee Corporation is analyzing a capital expenditure that will involve a cash outlay of $109,332. Estimated cash flows are e

xpected to be $36,000 annually for 4 years. The present value factors for an annuity of $1 for 4 years at interest of 10%, 12%, 14%, and 15% are 3.170, 3.037, 2.914, and 2.855, respectively. The internal rate of return for this investment is a.9% b.3% c.10% d.12%
Business
1 answer:
Mazyrski [523]3 years ago
8 0

Answer:

D

Explanation:

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

IRR can be calculated with a financial calculator  

Cash flow in year 0 = $-109,332

Cash flow each year from year 1 to 4 = $36,000

IRR = 12%

To find the IRR using a financial calculator:

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.  

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Answer:

the payback period is 14 months

Explanation:

The computation of the payback period is shown below:

Profit is

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8 0
3 years ago
The _____ is an agency of the federal government that offers both managerial and financial assistance to small businesses.
Reil [10]

Answer:

D. Small Business Administration.

Explanation:

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The small business administration (SBA) serves as an intermediary between entrepreneurs and investors or creditors, in order to provide them with the necessary funds required to plan, start and grow their business.

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5 0
3 years ago
Glendale Paving currently has 45,000 shares of stock outstanding that sell for $38 per share. Assume no market imperfections or
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Answer:

$31. 15

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3 0
3 years ago
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Answer:

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Which of the following statements is NOT true of a department in the merchandise classification scheme? it is the second level i
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The first one is true I think
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3 years ago
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