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Mumz [18]
4 years ago
12

Home Security Systems is analyzing the purchase of manufacturing equipment that will cost $54,000. The annual cash inflows for t

he next three years will be:Year Cash Flow1 $ 27,000 2 25,000 3 20,000
Business
1 answer:
hoa [83]4 years ago
7 0

Answer:

This question does not include what you are required to do. I looked it up on the web and it is asking for the Internal rate of return (IRR)

Explanation:

Internal rate of return used in project evaluations is the rate at which the NPV of a project equals to zero.

You can solve for IRR using a financial calculator and the cashflow "CF " function.  Key in the following inputs;

Initial investment; CF0 = -54,000

Yr1 cashflow inflow ; C01 = 27,000

Yr2 cashflow inflow ; C02 = 25,000

Yr3 cashflow inflow ; C03 = 20,000

Then key in IRR then CPT = 16.792%

Therefore, the Internal rate of return(IRR) for this equipment  is 16.79%

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In an effort to make better and more efficient purchase decisions, the Ford Motor Co. includes various people, depending on the
expeople1 [14]

Answer:

Buying Center.

Explanation:

A Buying Center is a group if individuals within an organization that are responsible for making purchase decisions.

The Buying Center is also called the Decision Making Unit (DMU), and it includes personnel from various departments.

7 0
3 years ago
A decision is made at the margin when each alternative considers
laila [671]
The Answer is D cost and benefit ranked in progressive units.
8 0
3 years ago
Suppose two cities are considering tearing down their stadiums to build new ones. In one city, the old stadium cost $5 million t
timofeeve [1]

Answer:

These are the options for the question:

A. They should be more willing to tear down the $5 million stadium, because it cost less to build.

B. They should be more willing to tear down the $50 million stadium, because it cost more to build.

C. The cost to build the old stadium shouldn’t be considered.

And this is the correct answer:

A. They should be more willing to tear down the $5 million stadium, because it cost less to build.

Explanation:

City A will likely be more willing to tear down its old stadium because it costed $5 million to build. City B, on the other hand, will have to think twice because a stadium that costed $50 billion to build could have more value than it seems, or the City could simply not have enough money to build a better new stadium (something that would probably cost more than $50 billion to do).

4 0
4 years ago
Read 2 more answers
The internal rate of return (IRR): I. rule states that a typical investment project with an IRR that is less than the required r
Ierofanga [76]

Answer:

II, III, and IV only

Explanation:

The first statement is wrong. IRR is the rate that causes the net present value of a projects cash-flows to exactly equal zero, and therefore a project with a required rate of return higher than the IRR would mean that the cash-flows have to be discounted by a higher rate, which would yield a negative net present value. Such a project would reduce shareholder wealth and should be rejected. The other 3 statements are correct.

3 0
4 years ago
You observe that the current interest rate on short-term U.S. Treasury bills is 4.23 percent. You also read in the newspaper tha
slamgirl [31]

Answer:

Approximate real rate is 3.03%

Explanation:

We know that,

Real rate = Nominal rate - Inflation rate

Real rate = 4.23% - 1.2%

Real rate = 3.03%

The U.S treasury bills are considered as a nominal rate i.e 4.23% and the inflation rate is 1.2%. We simply subtract the nominal rate with the inflation rate to find out the real rate so that the accurate rate could come

4 0
4 years ago
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