Assets are equal to

You are offered a chance to buy an asset for $200,500 that is expected to produce cash flows of $100,000 at the end of Year 1, $

Lapatulllka [165]

Answer:

What rate of return (IRR) would you earn if you bought this asset?

8,48%

Explanation:

To find the IRR it's necessary to know which is the discount rate that applied to the cash flow of the assets gives a value that compensate the investment of $200,500.

Year 1 $100.000 / (1+0,0848)^1 = $92.182

Year 2 $100.000 / (1+0,0848)^2 = $35.690

Year 3 $100.000 / (1+0,0848)^3 = $41.398

Year 4 $100.000 / (1+0,0848)^4 = $31.230

Total Present Value of Cash Flow=

$92.182 + $35.690 + $41.398 + $31.230 = $200,500

There is no way to find the IRR without Excel, the only way is to try with different rates in the current cash flow formula.

3 0

3 years ago

On January 1, Year 1, Li Company purchased an asset that cost $45,000. The asset had an expected useful life of five years and a

maw [93]

Answer:

$9,450

Explanation:

In straight line depreciation the Depreciable value (Cost of asset - Salvage value of asset) is expensed over useful life of the asset. Each year same value of expense is charged.

When the salvage value is revised the value of depreciation will also be revised.

First we will calculate the Book value at the beginning of year 4.

Depreciable value = $45,000 - $9,000 = $36,000

Depreciation per year = $36,000 / 5 years = $7,200 per year

Book Value at start of year 4 = $45,000 - ($7,200 x 3 ) = $23,400

after revision of salvage value:

Depreciable value at start of year 4 = $23,400 - $4,500 = $18,900

Numbers of year remaining = 5 - 3 = 2 years

Depreciation each year = $18,900 / 2 = $9,450

8 0

3 years ago

In an experiment, the ______ group receives the manipulation of the independent variable.

Anvisha [2.4K]

I think it would be the dependent group..?

3 0

3 years ago

A company has provided the following data: Picture If the dollar contribution margin per unit is increased by 10%, total fixed c

shtirl [24]

Answer:

The net operating income increases by $11,000.

Explanation:

Data provided

Sales 3,000 units

Sales Price $70 per unit

Variable Cost $50 per unit

Fixed Cost $25,000

We can calculate the contribution margin as:

Contribution margin = sales price - variable cost = (70-50) = 20

The net operating income can be defined as:

$NOI=cm*q-FC=(p-vc)*q-FC\\\\NOI=(70-50)*3,000-25,000=20*3,000-25,000=60,000-25,000\\\\NOI=35,000$

According to the changes proposed in the problem

Contribution margin = 20 * (1+0.1) = 22

Fixed cost = 25,000 * (1-0.2) = 20,000

The new net operating income is:

$NOI=cm*q-FC=(p-vc)*q-FC\\\\NOI=22*3,000-20,000=66,000-20,000=46,000$

Then

$NOI'-NOI=46,000-35,000=11,000$

With these changes, the net operating income increases by $11,000.

4 0

3 years ago

Dunkin' donuts garners consumers' feedback and opinions to help determine which products to create. this is an example of the

garri49 [273]

The answer to this question is: marketing
Through marketing, a company will develop some methods in order to penetrate the market and increase brand recognition among its potential customers.
Marketing team will use the data from the feedback in order to make future change for the product so it could be easily accepted by the customers

4 0

3 years ago

Read 2 more answers