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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

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What classifications are possible for a company's activities based on Porter's value chain model?
Kobotan [32]

Answer: Common barriers to entry include special tax benefits to existing firms, patent protections, strong brand identity, customer loyalty, and high customer switching costs. Other barriers include the need for new companies to obtain licenses or regulatory clearance before operation.

Explanation: make me brainliest  .

4 0
3 years ago
Situation 1: A company offers a one-year warranty for the product that it manufactures. A history of warranty claims has been co
mr_godi [17]

Answer:

Please find the detailed explanation below.

Situation 1 and 2 have disclosure while situation 3 does not require any disclosure.

Explanation:

Situation 1. Accrual. The one-year warranty has created what is known as contingent liability. Contingent liability is a type of liability that is dependent on the outcome of some specific actions which has happened in the past. The eventual liability may or may not happen. But since the probable claim from the one-year warranty has been determined, it should be disclosed. But if the claim cannot be determined, it shouldn't be disclosed.

Situation 2. Since this contract happened before the issuance of financial statement and the amount of loss from this contract can be reasonably estimated or determined, then it must be disclosed and the likely amount must also be disclosed. This disclosure will be under 'note to the financial statement'.

Situation 3. This is a self insurance and self insurance is not an insurance. There is no contingent liability in this situation. Also, there is no accident, no injury. Hence, this is no disclosure here.

4 0
4 years ago
Because risk is associated with the potential for higher profits, businesspersons are motivated to choose organizational forms t
avanturin [10]

Answer:

The correct answer is A. True.

Explanation:

Risk management models are a great tool to anticipate and prevent possible losses that could occur when investing a certain capital, implementing appropriate precautionary measures; Therefore, organizations and investors that have a culture of risk, create a competitive advantage over others, by assuming assessed risks, gain experience in risk management, anticipate adverse changes, protect or cover their investments in advance and obtain higher profits by taking greater risks.

3 0
4 years ago
Financial markets a. facilitate the flow of funds from surplus to deficit units. b. facilitate the flow of funds from deficit to
Alex Ar [27]

Answer: Option C

     

Explanation: In simple words, financial markets refers to the market of stock, bonds and equities like securities in which the participant trade for the low transaction cost and easy availability of sellers and purchasers. Stock market is an example of financial markets.

The flow of funds from surplus to deficit is done by other financial institutions such as banks.

Hence the correct option is C.

3 0
4 years ago
Assuming Dell sales will grow 50% in 1997, how might the company fund this growth internally?
stealth61 [152]

Dell can fund this growth internally by:

  • The $469 million increase in current liabilities serves as a source of funds.
  • The estimated increase in net profits to $395 million is approximately $123 million.
  • The short-term investment is assumed to be the same as in 1996, namely $591 million.

<h3>What is funding?</h3>
  • Business financing is a funding option that allows business owners to obtain business loans to cover expenses such as temporary cash flow interruptions, expansion projects, stock and equipment, and seasonal spikes in activity.
  • Retained earnings, debt capital, and equity funding are the three major sources of corporate financing.

So, according to the given chart:

  • As a result, an additional operating asset of $794 million is required to sustain growth.
  • The $469 million increase in current liabilities serves as a source of funds.
  • The estimated increase in net profits to $395 million is approximately $123 million.
  • The short-term investment is assumed to be the same as in 1996, namely $591 million.
  • As a result, we can confidently predict that growth will be funded internally.

Therefore, Dell can fund this growth internally by:

  • The $469 million increase in current liabilities serves as a source of funds.
  • The estimated increase in net profits to $395 million is approximately $123 million.
  • The short-term investment is assumed to be the same as in 1996, namely $591 million.

Know more about funding here:

brainly.com/question/25887038

#SPJ4

8 0
2 years ago
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