Answer:
8%
Explanation:
The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.
The IRR can be calculated using a financial calculator.
Cash flow in year zero = $-165,000
Cash flow each year from year one to seven = $31,692
IRR = 8%
To find the IRR using a financial calacutor:
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.
I hope my answer helps you
Answer and Explanation:
a. The computation of depreciation for each of the first two years by the straight-line method is shown below:-
Depreciation
= (Assets cost - Salvage value) ÷ Useful life
= ($171,000 - 0) ÷ 25
= $6,840
For First year = $6,840
For Second year = $6,840
It would be the same for the remaining useful life
b. The computation of depreciation for each of the first two years by the double-declining-balance method is shown below:-
First we have to determine the depreciation rate which is shown below:
= One ÷ useful life
= 1 ÷ 25
= 4%
Now the rate is double So, 8%
In year 1, the original cost is $171,000, so the depreciation is $13,680 after applying the 8% depreciation rate
And, in year 2, the ($171,000 - $13,680) × 8% = $12,585.60
Answer: $770.22
Explanation:
If she makes equal contributions then those would be annuities. The $9,000 she wants to have will be the future value of the amount currently in her account and the annuity.
9,000 = 5,000 ( 1 + r) ^ n + ( annuity * future value interest factor of an annuity, 9%, 3 years)
9,000 = 5,000 ( 1 + 9%) ^ 3 + ( Annuity * 3.2781)
9,000 = 6,475.145 + 3.2781 * Annuity
Annuity = (9,000 - 6,475.145) / 3.2781
Annuity = $770.22
Answer: See explanation
Explanation:
AP = 4.15
SP = 4.0
SQ = 114000 × 2 = 228000
1. Direct Materials Price
= (AQ × AP) - (AQ × SP)
= (246000 × 4.15) - (246000 × 4.0)
= 1020900 - 984000
= 369000 U
2. Direct Materials Quantity
= (AQ × SP) - (SQ × SP)
where SQ = 114000 × 2 = 228000
= (220000 × 4.0) - (228000 × 4.0)
= 880000 - 912000
= 32000 F
3. Direct Labor Price
= (AH × AR) - (AH × SR)
= (58700 × 9.8) - (58700 × 10)
= 575260 - 587000
= 11740
4. Direct Labor Quantity
= (AH × SR) - (SH × SR)
where, SH = 114000 × ½ = 57000
= (58700 × 10) - (57000 × 10)
= 587000 - 570000
= 17000 U
5. Total Overhead Variances
= 352000 - (57000 × 6)
= 352000 - 342000
= 10000 Unfavorable
Check attachment for further details
Budgeting, and Putting money in the bank.