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
iris [78.8K]
3 years ago
7

Consider a project with an initial investment of $30,000, annual revenues of $7000 for the six-year useful life, a salvage value

of $5,000, and a planned overhaul cost of $12,000 at the end of the third year. Evaluate the project using both IRR and ERR.

Business
1 answer:
alexandr402 [8]3 years ago
4 0

Find below attachment

You might be interested in
A rock-climbing school faces two demand curves. the demand by local residents is q = 400 – 0.5p, and the demand by others is q =
horrorfan [7]
A rock-climbing school faces two demand curves. The demand by local residents is Q = four hundred - zero.fivep and the demand by others is Q = five hundred - zero.fivep. The marginal costs of serving either local residents or other are constant at one hundred dollars. If the rock-climbing school system third-degree price discrimination, It will charge local citizens and others a price of four hundred fifty dollars and five hundred fifty dollars, respectively.
7 0
3 years ago
A company that is continually using up its cash is considered to have a high
juin [17]
The answer is C. Burn rate.
8 0
2 years ago
Read 2 more answers
DuPont system of analysis Use the following ratio information for Johnson International and the industry averages for​ Johnson's
Verizon [17]

Answer:

a) DuPont analysis for Johnson International

2013: 0.059 x 2.11 x 1.75 = 0.2179 = 21.79%

2014: 0.058 x 2.18 x 1.75 = 0.2213 = 22.13%

2015: 0.049 x 2.34 x 1.85 = 0.2121 = 21.21%

b) DuPont analysis for industry averages

2013: 0.054 x 2.05 x 1.67 = 0.2121 = 21.21%

2014: 0.047 x 2.13 x 1.69 = 0.1692 = 16.92%

2015: 0.041 x 2.15 x 1.64 = 0.1446 = 14.46%

c) Johnson International's drivers follow the same tendency as the industry's average, e.g. net profit margin decreased in a similar manner, and total asset turnover increased also in a similar manner to the industry's average. The only driver that doesn't follow the industry's trend is financial leverage. While other companies in the same industry decreased their financial leverage, Johnson increased it. You should further analyze why this happened and what are the potential consequences.

Explanation:

The DuPont analysis is used to break down ROE into 3 different components and that way you can analyze whether a company's high ROE comes along with a high risk. The following formula is used to calculate ROE based on 3 different factors:

R OE = net pro fit margin x total assets turnover x financial leverage

8 0
3 years ago
The federal minimum wage law requires that most workers be paid at least $5.15 per hour. a governor of a small industrial state,
Art [367]
Age discrimination. .
4 0
3 years ago
Marcy owns the company Caps for Kids and sells her hand-knitted caps for $20 each. The variable cost per cap created is $10, and
iragen [17]
At breakeven point, the cost is equal to the revenue. This also means that the net profit is equal to zero. If we let x be the number of units sold or produced, the total costs and revenue are calculated as follows:

Total Cost = 10x + 10,000
Total Revenue = 20x

Equation both,
                10x + 10,000 = 20x
The value of x from the equation is 1000.

Answer: 1000
3 0
3 years ago
Other questions:
  • The 2018 income statement of Adrian Express reports sales of $20,510,000, cost of goods sold of $12,550,000, and net income of $
    11·1 answer
  • Last year, Reggie, a Los Angeles, California resident, began selling autographed footballs through Trojan Victory (TV), Incorpor
    6·1 answer
  • When JCPenney markets its Sandra Salcedo line of clothing to Hispanic women in Texas and Northern California, but not to other a
    14·1 answer
  • After decreasing Nominal & Real GDP, the Federal Reserve will_______.
    15·1 answer
  • Freda's Florist reported the following before-tax income statement items for the year ended December 31, 2021: Operating income
    10·1 answer
  • Which type of bank account is most likely to pay you interest on the money in the account?
    12·1 answer
  • To calculate the marginal utility of consuming the Nth product: a. divide total satisfaction from consuming all N products by N.
    5·1 answer
  • Why would a construction manager require fall guards to be installed in a high-rise construction project?
    13·1 answer
  • Government involvement in a modern economy is generally defended because:.
    7·1 answer
  • More accurate estimates and higher motivation are generally the result of using a(n) Blank______ budget. Multiple choice questio
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!