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AnnyKZ [126]
3 years ago
5

An investment costs $152,000 and has projected cash inflows of $71,800, $86,900, and −$11,200 for Years 1 to 3, respectively. If

the required rate of return is 15.5 percent, should you accept the investment based solely on the internal rate of return rule? Why or why not? Multiple Choice Yes; The IRR is less than the required return. Yes; The IRR exceeds the required return. You should not apply the IRR rule in this case. No; The IRR is less than the required return. No; The IRR exceeds the required return.
Business
1 answer:
Svetach [21]3 years ago
7 0

<u>Solution and Explanation:</u>

The following is used in order to calculate the internal rate of return

year  Cash flow    

0 -$152000    

1 $71800    

2 $86900    

3 -$11200    

Internal rate of return -2.07 percent ( the internal rate of return has been calculated by using the excel sheet)  

The IRR rule cannot be applied in this case. Since, the cash flow direction changes twice, there are two internal rate of return. Thus, the Internal rate of return cannot be used to determine acceptance or the rejection.

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The investigating areas should be field, processing units and finished goods inventory.

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Based on age segmentation of a target market, which group is at peak earning power but seeks to spend only on products that prov
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The correct answer is generation X.

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3 years ago
1. Depreciation on the equipment for the month of January is calculated using the straight-line method. At the time the equipmen
Gnoma [55]

Answer:

1 Depreciation expeense (Debit) $4,200

Accumulated depreciation (Credit) $4,200

2.Bad Debt expense (Dr.) $6,900

Accounts Receivables (Cr.) $6,900

3. Accrued Interest Expense (Dr.) $1,200

Notes Payable (Cr.) $1,200

4. Accrued Income Tax (Dr.) $14,200

Cash (Cr.) $14,200

5. Cash (Dr.) $4,200

Redemption of Gift Cards (Cr.) $4,200

Explanation:

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8 0
3 years ago
Cost of goods sold was $159,400 for the period. The beginning and ending Inventory balances for the period were $18,700 and $13,
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,Answer:

$168,700

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The computation of the cash paid to suppliers is shown below:

But before that first we have to determine the purchase amount which is

As we know that

Cost of goods sold = Beginning inventory + purchase - ending inventory

$159,400 = $18,700 + purchase - $13,700

So, the purchase amount is $154,400

Now the cash paid to suppliers is

= Opening balance of account payable + purchase made - ending balance of account payable

= $22,500 + $154,400 - $8,200

= $168,700

We simply applied the above formulas

7 0
3 years ago
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