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seraphim [82]
2 years ago
8

A project has cash flows of −$161,900, $60,800, $62,300, and $75,000 for Years 0 to 3, respectively. The required rate of return

is 13 percent. Based on the internal rate of return of _____ percent for this project, you should _____ the project.
Business
1 answer:
Degger [83]2 years ago
7 0

Answer:

Therefore, the internal rate of return is lower than the expected return, for this the project must be rejected

Explanation:

Solution

Given that

The cash flow of a project consists of the following amount from year 0 to 3 = −$161,900, $60,800, $62,300, and $75,000

The rate of return required = 13%

Now,

Let the Internal rate of return be y%

Thus,

At internal rate of return, the value of present inflows is the same as the value of present outflows.

So,

Internal rate of return = Value of present inflows = Value of present outflows

=161900 =60800/1.0y +62300/1.0 y ^2 + 75000/ 1,0 y^3

Therefore, y = internal rate of return 10.41%

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A Company just starting in business purchased three merchandise inventory items at the following prices. First purchase $80; Sec
gogolik [260]

Answer: $65

Explanation: Under the FIFO method, that is, first in first out method inventory is recorded on the assumption that the goods that were purchased first will also be sold first and the remaining inventory will have the latest purchased units.

So, in the given question the two units sold would be costing $80 and $95

Hence,

Gross profit = $240 - ($80 + $95)

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3 0
2 years ago
Arbor Corporation reports the following: Sales revenue $183,000; ending inventory $12,600; beginning inventory $15,600; purchase
spin [16.1K]

Answer: Cost of goods sold = $62500

Explanation:

Given that,

Sales revenue = $183,000

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Beginning inventory = $15,600

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purchases discounts = $4,000

purchase returns and allowances = $1,500

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Cost of goods sold = Beginning inventory + purchases - purchases discounts - purchase returns and allowances + freight-in - Ending inventory

= $15,600 +  $64,000 - $4,000 - $1,500 + $1,000 - $12,600

= $62500

4 0
3 years ago
After visiting several automobile dealerships, Richard selects the used car he wants. He likes its $11,500 price, but financing
aksik [14]

Explanation:

I = Prt

I = (10000)(.11)(4) = $4400

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Total Cost = 2000 + 8000 + 4400

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Monthly Payment = (10,000 + 4400) / 48

= $300

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APR = (2 × 12 × 4400) / [10,000 × (48+1)]

= 21.55%

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