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AleksandrR [38]
3 years ago
6

Crystal Industries is considering an expansion project with cash flows of -$287,500, $107,500, $196,100, $104,500, and-$92,700 f

or Years 0 through 4. Should the firm proceed with the expansion based on the discounting approach to the modified internal rate of return if the discount rate is 13.4 percent? Why or why not?
A. Yes: The MIRR is 14.45 percent.
B. No: The MIRR is 9.13 percent.
C. No: The MIRR is 11.23 percent.
D. No: The MIRR is 14.45 percent.
E. Yes: The MIRR is 9.13 percent.
Business
1 answer:
GaryK [48]3 years ago
4 0

Answer:

E. Yes: The MIRR is 9.13 percent.

Explanation:

<em>The First Step is to Calculate the Terminal Value at end of year 4.  </em>

Terminal Value (FV) = Sum of (PV x (1 + r) ^ 5 - n)

                                 = $107,500 x (1.134) ^ 3 + $196,100 x (1.134) ^ 2 + $104,500 x (1.134) ^ 1 + -$92,700 x (1.134) ^ 0  

                                 = $156,764.47 + $252,175,97 + $118,503 - $92,700  

                                 = $434,743.44

<em>The Next Step is to Calculate the MIRR using a Financial Calculator : </em>

- $287,500 CFj

0           CFj

0          CFj

0            CFj

$434,743.44   CFj

Shift IRR/Yr 9.13%

Therefore, the MIRR is 9.13% .

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One reason why a blanket obligation for all employees to obey their employers no matter what is unreasonable is that the choice
Serjik [45]

Answer:TRUE

Explanation:COERCIVE FORCE is a force applied to a person or a group of persons in order to make them carry out an involuntary action or actions. It is used by employers of labor in order to mandate their employees to carry out certain activities. All Employees are required by their employers to obey the rules and regulations guiding the establishment even when it is not based on the interest of the employees.

3 0
3 years ago
Susan Wilson wants to accumulate $14,500 by the end of 12 years. If the annual interest rate is 5.70 percent and interest compou
Aleksandr [31]

Answer:

She have to invest $7,387 today to achieve goal

Explanation:

Future value is the accumulated value of principal and compounding interest after some period of investment.

Target Future value = A = $14,500

Number of year = 12 years

Yearling compounding = 2 time a year

Total compounding = n = 12 x 2 = 24 compounding periods

Interest rate = r = 5.7% yearly = 5.7% / 2 = 2.85% semiannually

A = P ( 1 + r )^n

$14,500 = P ( 1 + 2.85% )^24

$14,500 = P x 1.963

P = $14,500 / 1.963

P = 7,386.65

P = 7,387

8 0
3 years ago
Money received today is worth more than the same amount of money received sometimes in the future is
Shtirlitz [24]
Most likely its the other way around 

3 0
3 years ago
Read 2 more answers
The average capital investments for 2006 were:
iogann1982 [59]

Answer:

A)$15,000

Explanation:

jones   100,000

king    200,000

lane <u>   300,000  </u>

Total   600,000

Assuming profit are distributed based on capital investment, jones will receive:

100,000/600,000 = 1/6 of the profit

proft x jones ratio = allocate income to Jones

90,000 x 1/6 = 15,000

This will be the amount of profit attributable to Jones.

7 0
3 years ago
Department E had 4,000 units in Work in Process, that were 40% completed at the beginning of the period, at a cost of $12,500. 1
garri49 [273]

Answer:

Total equivalent units= 17,250 units

Explanation:

<em>Under the weighted average method of valuation, to account for completed units, it is assumed that the entire degree of work required to a complete a set of work is done in the period under consideration.So there is no separation of the completed units into opening inventory and fully worked. </em>

Equivalent units = Degree of completion× units of inventory

Item                           units                                        Equivalent unit

Completed                 15,000           100%× 15,000 =  15,000

Closing inventory        3,000            75%× 3,000 =     <u>2,250 </u>

Total equivalent units                                                   <u>  17,250</u>

Total equivalent units= 17,250 units

5 0
3 years ago
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