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KIM [24]
3 years ago
14

Consider the following cash flows: Year Cash Flow 0 –$ 32,500 1 14,800 2 16,900 3 12,200 What is the IRR of the above set of cas

h flows? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Internal rate of return %
Business
1 answer:
Brilliant_brown [7]3 years ago
5 0

Answer:

The correct answer is 17.22%.

Explanation:

According to the scenario, the computation of the given data are as follows:

Let IRR be X, then we can calculate the IRR by using following formula:

Year 0 = Year 1 cash flow ÷ ( 1 + IRR)^1 + Year 2 Cash flow ÷ ( 1 + IRR)^2 + Year 3 Cash flow ÷ ( 1 + IRR)^3 + Year 0 Cash flow  

By putting the value, we get

0 = $14,800 ÷ ( 1 + X)^1 + $16,900 ÷ ( 1 + X)^2 + $12,200 ÷ ( 1 + X)^3 - $32,500  By solving the function    

IRR = 17.22%

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Both supply and demand concepts rest on the relationship between quantity supplied or demanded.
Rashid [163]

Answer:

False

Explanation:

Both supply and demand concepts rest on the relationship between price and quantity.

Quantity demanded increase when price falls and falls when price increases.

Quantity supplied increases when price increases and falls when price falls.

The demand and supply curve are plotted with price on the y axis and quantity on the x axis.

I hope my answer helps you

7 0
4 years ago
Directional Lock Question #4: This investment is a basic good that can be 5 points
erastova [34]

Answer:

R

Explanation:

3 0
3 years ago
A stock has an expected return of 15.1 percent, the risk-free rate is 5.95 percent, and the market risk premium is 7.8 percent.
horsena [70]

Answer:

1.17%

Explanation:

Expected return is 15.1 %

Risk free rate is 5.95 %

Market risk premium is 7.8%

Therefore the beta can be calculated as follows

Expected return= risk free rate + (beta×market risk premium)

15.1%= 5.95% + (beta × 7.8%)

15.1%-5.95%= 7.8% beta

9.15%= 7.8% beta

beta= 9.15%/7.8%

beta= 1.17%

6 0
3 years ago
Caroline is conducting a share point analysis for Bloomingdale's. First, she estimates total industry sales by compiling a list
Pepsi [2]

The correct answer is B) Compute gross margin per sales point.

Caroline is conducting a share point analysis for Bloomingdale's. First, she estimates total industry sales by compiling a list of all department stores and their sales for the previous year. Next, she estimates Bloomingdale's market share within the industry. To find the value of one share point, Caroline must <em>compute the gross margin per sales point.</em>

Gross margin is part of the income statement that firms or industries need to elaborate every year. This metric indicates a detailed description of a company's revenues, expenses, and profit. When preparing a budget, gross margin defines the limits a company must take into account. That is why Caroline must pay close attention to the calculation and computing.

3 0
3 years ago
Mila is at a flea market. She has $50 in her wallet. She decides that she will spend $15 on jewelry, $20 on a pair of jeans, $5
tigry1 [53]

Answer: She will give up on the T-shirt and use the money to buy better jeans.

She will buy the T-shirt for $8 and not order juice at lunch.

Explanation:

A trade-off refers to the compromise which is made when an individual decides to take one action and give up on the other.

When Mila buy's the T-shirt for $8 and does not order juice at lunch, she is making a trade-off between buying a t-shirt and ordering a juice at lunch.

Similarly, when Mila decides to give-up on the T-shirt and decides to buy a better jeans she is making a trade-off between


6 0
3 years ago
Read 2 more answers
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