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Mariana [72]
3 years ago
9

Analyze if the investment in new equipment is profitable based on the information given below. Cost of new equipment $66,000 Yea

rly expected cash flows to be received $20,000 Expected life 4 years Minimum desired rate of return 10% Present Value of an Annuity of $1 at 10% for 4 years 3.170
a.The internal rate of return is greater than 10% and is not profitable.
b.The internal rate of return is greater than 10% and is profitable.
c.The internal rate of return is less than 10% and is profitable.
d.The internal rate of return is less than 10% and is not profitable.
Business
1 answer:
katrin [286]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 =  $-66,000

Cash flow each year from year 1 to 4 = $20,000

IRR = 8.16%

For the project to be profitable, the IRR has to be greater than the desired rate of return

Since the IRR (8.16%) is lower than the desired rate of return (10%), the project isn't profitable

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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How can technological innovation help a company become globalised​
shutvik [7]

Answer: Technology is the vital force in the modern form of business globalization. ... Technology has helped us in overcoming the major hurdles of globalization and international trade such as trade barrier, lack of common ethical standard, transportation cost and delay in information exchange, thereby changing the market place.

Explanation:

5 0
3 years ago
In the short run, expansionary monetary policy ___________ real gross domestic product (GDP), ___________ unemployment, and ____
iren2701 [21]

Answer:

a.raises; lowers; raises

Explanation:

An expansionary monetary policy is usually undertaken by the Central bank to increase money supply.

When money supply is increased, output increases and real GDP rises.

The rise in money supply which causes output to increase would lead to an increase in demand for Labour. This would reduce unemployment.

Because of rise of money supply, the supply of money in the economy would rise and the price level would rise.

I hope my answer helps you.

5 0
3 years ago
Why is Eagle Bank's 1-year CD the only account
Rudik [331]

Eagle Bank's 1-year CD became the only account guaranteed to return $22 in interest on a $1,000 deposit because a typical CD earns about 1.5% or less instead of 2.2%.

<h3>What is a CD?</h3>

A certificate of deposit (CD) is a special bank savings account that earns interest on a lump-sum deposit for a predetermined period of time without withdrawals until the due period.

CDs are among the lowest-risk investments as they do not lose value if a bank fails based on the Federal Deposit Insurance Corporation (FDIC) insured guarantee.

Thus, Eagle Bank's 1-year CD became the only account guaranteed to return $22 in interest on a $1,000 deposit because a typical CD earns about 1.5% or less instead of 2.2%.

Learn more about Certificate of Deposit at brainly.com/question/1874937

#SPJ1

7 0
1 year ago
Orion would like to go on a trip to Ireland in two years. He wants to have $3,000 for the trip, so he is planning to invest mone
denis-greek [22]

Answer:

The answer is: If Orion wants to have $3,000 in two years, he must invest $2,572.02 today

Explanation:

To determine how much money Orion has to invest today in order to have $3,000 in two years, considering he will get an 8% compound interest rate, we can use this formula:

P = FV / (1 + r)²    

Where:

  • FV = $3,000
  • r = 8%

P = $3,000 / (1 + 8%)²

P = $3,000 / 1.1664

P = $2,572.02

4 0
3 years ago
An organization that collects and distributes money to candidates is known as a(n)_______.
MA_775_DIABLO [31]

Answer:

political action committee

Explanation:

A political action committee is an organization set up by a political party to gather funds through the contribution and donation from members of the party. The funds collected by the political action committee are used to support the party candidate or campaign against the opposition party candidate. The political action committee is not obligated by law to disclose the identities of donors.

5 0
3 years ago
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