Which One of the following is true about intraperiod tax allocation?

Crockin Corporation is considering a machine that will save $9,000 a year in cash operating costs each year for the next six yea

Roman55 [17]

Answer:

IRR = 16.5%

Explanation:

The IRR is the discount rate that equates the present value of cash inflows to that of cash outflows. At the IRR, the Net Present Value (NPV) of a project is equal to zero

If the IRR greater than the required rate of return , we accept the project for implementation

If the IRR is less than that the required rate , we reject the project for implementation

IRR = a% + ( NPVa/(NPVa + NPVb)× (b-a)%

NPV = PV of annual savings - initial cost

PV of annual savings = A× (1- (1+r)^(-n) )/r

A- annual savings in operating cost , r- rate of return, n- number of years

NPVa at 10% discount rate

PV of cash inflow = (9,000× 1-1.1^-6)/0.1 = 39,197.35

NPV = 65,328.91 - 33,165 = 6,032.35

NPVb at 20% discount rate

PV of cash inflow = (9,000× 1-1.2^-6)/0.2= (3,235.41)

NPV = 29,929.59 -33,165 = (3,235.41)

IRR = a% + ( NPVa/(NPVa + NPVb)× (b-a)%

IRR = 10% + ( (6,032.35/(6,032.35 +3,235.41) )× (20-10)%= 16.51%

IRR = 16.5%

8 0

3 years ago

Youâre a project manager working on a software development project. You are working hand in hand with a systems analyst who is c

Luba_88 [7]

Answer:

The option is B. Project manager with input from systems analyst.

Explanation:

A project manager is an individual who has the overall responsibility for the successful initiation, planning, design, execution, monitoring, controlling and closure of a project.

The roles of a project manager include, but not limited to:

Planning and Defining Scope

Activity Planning and Sequencing

Resource Planning

Developing Schedules

Time Estimating

Cost Estimating

Developing a Budget

Documentation

Creating Charts and Schedules

Risk Analysis

However, Project Managers can not work alone, they will therefore work with experts and people who are skilled in their field. They will form a team that will report to the project manager, and work together to ensure the success of the project.

From the explanations above, we can conclude that the systems analyst will only provide input that will help the project manager in making decisions about the management of the project.

5 0

3 years ago

I................................

asambeis [7]

Answer:

u..............................

6 0

3 years ago

Lydia really enjoys math and thinks that she would enjoy a job that involves analyzing data. Which job would be a good fit for h

Papessa [141]

the best choice would be to become a TAX AUDITOR.

8 0

3 years ago

Read 2 more answers

Bond Yields and Rates of Return A 30-year, 10% semiannual coupon bond with a par value of $1,000 may be called in 4 years at a c

Nookie1986 [14]

Answer:

The bond's yield to maturity is 9.45% using Excel to get exact values, and 9.59% using approximate method.

Explanation:

We can calculate is using 2 ways, using Excel to get the exact percentage or with approximate methods, calculating the semi-annual Yield to Maturity using the following formula

$YTM_{sm} =\cfrac{PMT+\cfrac{FV-PV}n}{\cfrac{FV+PV}2}$