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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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Annapolis Company purchased a $1,000, 6%, 5-year bond at 97 and held it to maturity. The straight line method of amortization is
Roman55 [17]

Answer: $330

Explanation:

The Net cash received is the Total Money received minus the Total money paid.

The total money paid is calculated as such,

= $1,000 x 97%( this a DISCOUNT bond meaning that it was sold for less than Par. This number signifies how much in percentage of Par it was purchased for)

= $970

$970 is the Total Amount paid.

The Total Amount Received would be,

= Principle on Maturity + Interest for 5 years

= 1,000 + 1,000(0.06) * 5 years

= $1,300

Net Cash Received is therefore,

= Total Amount Received - Total Amount Paid

= 1,300 - 970

= $330

$330 is the net cash received over the life of the bond investment.

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3 years ago
An ATM card is used on January 24 to withdraw cash. What is the balance after this transaction? $158.53 $246.53 $15.00 $40.00
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The answer to this is $15.00
5 0
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Question 3 of 10
Stels [109]

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underrepresented student scholarship.

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Which term describes a distribution of the company’s assets back to the owners of the business?.
Sveta_85 [38]

Answer:

dividend is the correct answer.

Explanation:

5 0
2 years ago
Weighted Average Method, FIFO Method, Physical Flow, Equivalent Units Heap Company manufactures a product that passes through tw
liubo4ka [24]

Answer:

<u>Physical flow schedule</u>

Inputs

Beginning Work in Process                86,300

Add Units Started                              105,900

Total                                                    192,200

Outputs

Units Completed and Transferred   172,900

Units in Ending Work in Process       19,300

Total                                                    192,200

Explanation:

A physical flow schedule is simply a schedule of units introduced into the process and units outputs without expressing them to equivalent units.

Units Introduced must always be equal to units outputs in physicals terms.

<em>Units Completed and Transferred = Beginning Inventory + Units Started - Units in Ending Work in Process</em>

                                                        = 86,300 + 105,900 - 19,300

                                                        = 172,900

6 0
2 years ago
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