The difference between a business's revenues and its expenses is known as its ______

T<em>he 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 </em>

<em>If the IRR greater than the required rate of return , we accept the project for implementation </em>

<em>If the IRR is less than that the required rate , we reject the project for implementation </em>

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

A mortgage clause that states that the mortgage is due and payable upon certain conditions, such as non-payment is: Select one:

ivolga24 [154]

A mortgage clause that states that the mortgage is due and payable upon certain conditions, such as the non-payment is the option(d) i.e, the Acceleration clause.

<h3>What is a mortgage clause?</h3>

A provision in an insurance policy (such as a fire insurance policy) that allows the designated mortgage to receive payment for property damage or loss.

There are different types of clauses:

Acceleration clause
Due-On-Sale clause
Prepayment Penalty clause
Subordination clause
Release clause

If the borrower breaches the conditions of the agreement, an acceleration clause in a mortgage or trust deed states that the entire obligation is payable immediately. Additionally, it will specify the circumstances under which a lender may request full loan payback. For instance, home loans frequently feature an acceleration provision that kicks in after a certain number of missed payments.

Most of the time, it is harmful to accelerate a loan. Typically, it denotes that the borrower has fallen behind on payments or broken the terms of the agreement, and the lender is requiring prompt repayment of the whole loan balance to avoid foreclosure.

To know more about mortgage clause refer to: brainly.com/question/13964240

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8 0

2 years ago

At a volume of 5,000 units, Pwerson Company incurred $32,000 in factory overhead costs, including $14,000 in fixed costs. If vol

shusha [124]

Answer:

If volume increases to 6,000 units and both 5,000 units and 6,000 units are within the relevant range, the company would expect to incur total factory overhead costs of $35,600

Explanation:

At a volume of 5,000 units, Pwerson Company incurred $32,000 in factory overhead costs, including $14,000 in fixed costs.

The variable in factory overhead costs = $32,000 - $14,000 = $18,000

The variable in factory overhead costs per unit = $18,000/5,000 = $3.6

Both 5,000 units and 6,000 units are within the relevant range. Therefore, when volume increases to 6,000 units, fixed costs are not change.

The variable in factory overhead costs = $3.6 x 6,000 = $21,600

Total factory overhead costs = $21,600 + $14,000 = $35,600

4 0

3 years ago

The difference between a​ business's revenues and its expenses is known as its​ _______.

The difference between a business's revenues and its expenses is known as its _______.