1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
BARSIC [14]
3 years ago
6

A company is considering an iron ore extraction project that requires an initial investment of​ $1,400,000 and will yield annual

cash inflows of​ $613,228 for three years. The​ company's discount rate is​ 9%. Calculate IRR. Present value of ordinary annuity of​ $1:
​10% ​12% ​14% ​15% ​ 16% ​18% ​20%

1 0.909 0.893 0.877 0.870 0.862 0.847 0.833

2 1.736 1.690 1.647 1.626 1.605 1.566 1.528

3 2.487 2.402 2.322 2.283 2.246 2.174 2.106

4 3.170 3.037 2.914 2.855 2.798 2.690 2.589


a. 13%

b. 15%

c. 14%

d. 17%
Business
1 answer:
Akimi4 [234]3 years ago
5 0

Answer:

b. 15% 

Explanation:

IRR is the discount rate that equates the after tax cash flows from an investment to the amount invested.

IRR can be calculated using a financial calculator:

Cash flow in year 0 = $-1,400,000 

Cash flow each year for 3 years = $613,228

IRR = 15%

To find the IRR using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.

I hope my answer helps you

You might be interested in
Explain the vertical integration options and directions for the following providers: (a) a major academic medical center such as
kvasek [131]

Answer:

(a)<u> Backward vertical integration</u> (b) <u>Forward vertical integration</u> (c) <u>Backward vertical integration</u>

Explanation:

(a) An academic medical center is an example of backward vertical integration. The specialist and faculties from the university will provide treatment to the patients. Such medical centers have tertiary service with several intermediaries.

(b) Here, there is no intermediary between patients and general surgery group. The general surgery group treat patients directly. So here there is a forward vertical integration system.

(c) A manufacturer of durable medical equipment will supply to retailers who in turn supply these to hospitals where the patients will receive service from these equipment. So, it is an example of backward vertical integration.

3 0
4 years ago
You need to decide whether to fight a small fire using a portable fire extinguisher.
julsineya [31]

Answer:

If you encounter a fire, a portable fire extinguisher can help protect you and possibly stop the fire in its tracks. This article covers how portable fire extinguishers work and how to use them.

Secure Your Exit

The first and most important purpose of a portable fire extinguisher is to help people escape. Portable fire extinguishers can clear fire away from your escape route or help keep an exit open for others. You should know where extinguishers are located and how to operate them. This helps ensure safe evacuations.

Fight the Fire

The second purpose of a portable fire extinguisher is to fully extinguish fires. This requires training. Portable fire extinguishers cannot extinguish large fires. Many employers do not want their employees fighting fires no matter the size. If this is the case, the extinguishers in your workplace may only be for protecting escape routes. If your employer wants you to fight small fires, they will train you.

Types of Fire Extinguishers

Fire extinguishers are rated to fight different classes of fire. Most extinguishers are rated to fight A, B and C fires, but not all. Make sure the fire extinguisher you use will work on the fire you’re facing. The wrong extinguisher could make things worse.

8 0
3 years ago
Read 2 more answers
Analysis of sales performance records helps marketers to find clues to potential problems.
Alla [95]
That will be call sales analysis, analysis of sale performance records helps marketers to find clues to potential problem
3 0
3 years ago
Sara spends $25 for an all-day ticket to an amusement park. After one ride, it begins to rain and she wishes she had never come.
iren2701 [21]

Answer:

False.

Explanation:

False, it is given that Sara spends $25 for all-day ticket in the amusement park. However, this is a shuck cost that she can not recover. Moreover, she has taken one ride so marginal analysis shows that all his $25 is not wasted. She has utilized some portion of their money so we can not say that she has wasted all his money.

7 0
3 years ago
What steps must countries take to transition to a mixed-market economy? Check all that apply. They must establish state-owned bu
IrinaVladis [17]

The answer is:

B. They must establish a fair labor market.

D. They must open up trade to other countries

In mixed-market economy, both government and the private sectors play equally important roles in managing/regulating the economy.

Establishing fair labor market is being done in order to prevent the private sectors from abusing their workers. Opening trade to other countries is being done by the government sectors through mutually beneficial foreign policies which will improve our total exports.

7 0
3 years ago
Read 2 more answers
Other questions:
  • How can the price of baseball bats be affected by the demand for paper
    12·1 answer
  • Suppose a monopolist has a demand curve that can be expressed as P = 90 - Q. The monopolist's marginal revenue curve can be expr
    11·2 answers
  • What are the different structures of the market
    13·1 answer
  • If you purchase a straddle on euros, this implies that you: A) finance the purchase of a call option by selling a put option in
    6·1 answer
  • Identify the outcomes when a manager views supply chain operations as a collection of processes rather than a collection of depa
    7·1 answer
  • A) What are the two features in a market economy that stem from self interest?
    9·1 answer
  • A privately owned summer camp for youngsters has the following data for a 12-week session: Charge per camper Fixed costs Variabl
    15·1 answer
  • Case X: Compute cash received from customers:
    5·1 answer
  • Partners X, Y and Z have capital balances of $80, 000, $180,000 and $60,000 respectively. Immediately prior to liquidation. Tota
    10·1 answer
  • Consider an economy at full employment. if consumers and firms become less optimistic about the future economy then:____.
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!