Answer:
15.54 %
Explanation:
The Internal Rate of Return (IRR) is the Interest rate that will make the present value of Cash Flows equal to the price or initial investment.
Step 1
First determine the summary of Cash Flow of the project.
The Projects` cash flows are as follows :
Year 0 = $1,920,000
Year 1 = $580,127.00
Year 2 = $580,127.00
Year 3 = $580,127.00
Year 4 = $580,127.00
Year 5 = $580,127.00
Step 2
Calculate the IRR.
From this point i will use a Financial Calculator. The Function to use is the CFj for uneven Cash Flows.
($1,920,000) CFj
$580,127.00 CFj
$580,127.00 CFj
$580,127.00 CFj
$580,127.00 CFj
$580,127.00 CFj
Shift IRR/YR 15.5415 or 15.54 %
Conclusion :
The internal rate of return for the J-Mix 2000 is 15.54 %
Answer:
a. Are the stock and the rights correctly priced on the ex-rights day?
stock price at ex-right = [(3 x $80) + $53] / 4 = $73.25
cost of ex-right = $80 - $73.25 = $6.75
the rights are underpriced since they are sold at $2, and they should sell at $6.75
b. Describe a transaction in which you could use these prices to create an immediate profit.
You can purchase 3 rights at $6 and then pay subscription price ($53) and you would have an stock at $59. Your profit = $65 - $59 = $6 per stock.
<span>First, figure out the annual rent price, which is $1,200 * 12 = $14,400. Then multiply $50,000 * 12 =$600,000 gross income a year * 8% for the commission amount of $48,000. Then add $48,000 and $14,400 together to get the annual rent with the commission that is due of $62,400.</span>
Answer:
9,600 units
$316,800
Explanation:
The computation of break-even point is shown below:-
Contribution per unit = Selling price per unit - Variable price per unit
= $33 - $13
= $20
Break-even in units = Fixed cost ÷ Contribution per unit
= $192,000 ÷ $20
= 9,600 units
Break even sales in dollars = Break-even in units × selling price per unit
= $9,600 × $33
= $316,800
So, for computing the break even in units and dollars we simply applied the above formula.
