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kenny6666 [7]
3 years ago
12

Darrin Corporation is considering a proposal to purchase a new piece of equipment. The cost of the equipment is $16,611. The equ

ipment is estimated to provide an annual cash flow of $3,000 for the next nine years. The company has a required rate of return of 15%. Calculate the internal rate of return (IRR), and interpret the results. Use the present value of an annuity table.​
Business
1 answer:
My name is Ann [436]3 years ago
7 0
First find the present value factor
The formula is
Net Investment÷Annuity=PV Factor
16,611÷3,000=5.537

Pv factor is 5.537

Th e PV of an ordinary annuity table is examined to find the IRR.
In the table, find the row representing the project’s life (in this case, nine periods) and find
the PV factor resulting from the equation solution. In row 9, a factor of 5.537 appears
under the column headed 11 percent. Thus, the internal rate of return for this investment
is 11 percent.

Interpretation
Since the IRR is lesser than the required rate of return, the proposal should be rejected 15% > 11%
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Vandelay Industries stock has a 50% chance of producing a 20% return, a 30% chance of producing a 8% return, and a 20% chance of
Yanka [14]

Answer:

8.2%

Explanation:

Calculation to determine the expected rate of return

Expected rate of return= (.50 (.20)) +(.30(.08)) + (.20*(-.21)

Expected rate of return=0.1+0.024+(0.042)

Expected rate of return=.082*100

Expected rate of return=8.2%

Therefore the expected rate of return is 8.2%

3 0
3 years ago
In which of the following situations could a research analyst use multiple regression? A real estate development company wants t
rjkz [21]

Answer:

A). A real estate development company wants to estimate the probable sales of construction services on the basis of marriage rates, population movement in the region, and interest rates on construction loans.

Explanation:

Multiple regression is elucidated as the statistical technique employed to determine the association between two or more dependent or response and independent/explanatory variables.

As per the question, the multiple regression can be employed in the first situation where 'a real estate company wishes to forecast the probable sales of construction on the basis of....loans.' Multiple regression analysis would help in representing the linear relationship between these two variables that helps in ensuring effective analysis and making predictions and ensuring optimum output. Thus, <u>option A</u> is the correct answer.

5 0
4 years ago
In October, Glazier Inc. reports 42,000 actual direct labor hours, and it incurs $194,000 of manufacturing overhead costs. Stand
saveliy_v [14]

Answer:

Over= $16,000 favorable

Explanation:

Giving the following information:

In October, Glazier Inc. reports 42,000 actual direct labor hours, and it incurs $194,000 of manufacturing overhead costs. Standard hours allowed for the work done is 40,000 hours. Glazier’s predetermined overhead rate is $5.00 per direct labor hour.

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 5*42,000= 210,000

Over/under allocation= real MOH - allocated MOH

Over/under allocation= 194,000 - 210,000= 16,000 favorable

6 0
4 years ago
According to Coach's website, the company has built a distinctive style and prestigious image over the past 40 years to develop
mezya [45]

Answer:

b. hedonic prices.

Explanation:

Hedonic prices -

It refers to the method by which the combined price of the goods and services are taken , in order to measure the implicit price of the non - market goods , is referred to as hedonic prices .

The model helps to predict the quantitative values for the environmental or ecosystem services which is capable to affect the market prices for homes .

Hence , from the given scenario of the question ,

The correct answer is hedonic prices .

5 0
3 years ago
1. candidate recalls all the good things he has done, omitting facts that would justify his defeat debating team 2. impression t
ehidna [41]

The question is not properly organised and is asking what the following action means, see below proper sequence:

1.  A candidate recalling all the good things he has done, and omitting facts that would justify his defeat debating team is called (…).

2. Giving the impression that everyone is involved so the listener would feel the "danger" of missing out is  (…).

3. An organized group that competes with others in the art of debate is  (…).

4. Without any danger of error; basing actions on the truth is  (…).

5. To inform and make known the opinions and feelings of oneself is  (…).

Answer:

1. card-stacking

2. bandwagon

3. a debating Team

4. factually

5. propagandizing

5 0
3 years ago
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