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
Arisa [49]
3 years ago
15

Using the following data:

Business
1 answer:
KonstantinChe [14]3 years ago
7 0

Answer:

The answer is

A. 26.46%

B. $5,958,354.88

Explanation:

A.

IRR = CFo/(1 + IRR)^0 + CF1/(1 + IRR)^1 + CF2/(1 + IRR)^2 + CF3/(1 + IRR)^3 + CF4/(1 + IRR)^4 + CF5/(1 + IRR)^5

CFo = -$10,000,000

CF1 = $3,000,000

CF2 = $3,500,000

CF3 = $4,000,000

CF4 = $4,900,000

CF5 = $5,000,000

Using a financial calculator;

IRR = 26.46%

B.

NPV = -CFo + CF1/(1+ r)^1 + CF2/(1 +r)^2 + CF3/(1 + r)^3 + CF4/(1 + r)^4 + CF5/(1 + r)^5

CFo = -$10,000,000

CF1 = $3,000,000

CF2 = $3,500,000

CF3 = $4,000,000

CF4 = $4,900,000

CF5 = $5,000,000

Using a financial calculator;

NPV = $5,958,354.88

You might be interested in
2.<br>What is the effect on the market when suppliers under invest in their businesses?​
Ghella [55]

Answer:

the profit margin will decrease and supplies won't get their promotin

3 0
3 years ago
On April 1, 2013, Four Seasons Landscaping, LLC purchased new lawn mowers for $70,000 in cash (total cost). They have a useful l
creativ13 [48]

Answer:

Please see the calculation explanation below and the depreciation expense chart for all methods is attached.

Explanation:

1. STRAIGHT-LINE DEPRECIATION METHOD:

<em>Depreciation Expense = (Total Cost - Residual Value) / Useful Life </em>

Depreciation Expense = ($70,000 - $10,000) / 3 years

Depreciation Expense = $60,000 / 3 years

Depreciation Expense = $20,000 per year

2. DOUBLE DECLINING BALANCE DEPRECIATION METHOD:

<em>Depreciation Expense Rate = (100% / Useful Life) x 2 </em>

Depreciation Expense Rate = (100% / 3) x 2

Depreciation Expense Rate = 66.67%

<em>2013: </em>

Depreciation Expense = $70,000 x 66.67% = $46,667

<em>2014: </em>

Depreciation Expense = ($70,000 - $46,667) x 66.67% = $15,556

Since the residual value is $10,000 and as per Double Declining Balance Method, the point at which Book Value is equal to the residual value, no depreciation is taken.

<em>Depreciation Expense = (Total Cost - Residual Value) - (Accumulated Depreciation) </em>

Depreciation Expense = ($70,000 - $10,000) - ($46,667)  

Depreciation Expense = $13,333

<em>2015: </em>

No Depreciation Expense for year 3, as Book value is already equal to residual value in year 2.

3. PER HOUR DEPRECIATION METHOD:

<em>2013:</em><em> </em>

<em>Depreciation Cost per hour = (Engine Hours in 2013 / Total Engine Hours) x (Total Cost - Residual Value) </em>

Depreciation Cost per hour = (500 / 1,200) x ($70,000 - $10,000)

Depreciation Cost per hour = $25,000

<em>2014: </em>

<em>Depreciation Cost per hour = (Engine Hours in 2014 / Total Engine Hours) x (Total Cost - Residual Value) </em>

Depreciation Cost per hour = (400 / 1,200) x ($70,000 - $10,000)

Depreciation Cost per hour = $20,000

<em>2015: </em>

<em>Depreciation Cost per hour = (Engine Hours in 2015 / Total Engine Hours) x (Total Cost - Residual Value) </em>

Depreciation Cost per hour = (300 / 1,200) x ($70,000 - $10,000)

Depreciation Cost per hour = $15,000

6 0
3 years ago
Instructing your broker to buy or sell a stock at a particular price is a:
Liula [17]
Trading or Marketing guides/instructions
5 0
3 years ago
During a user's onboarding process, many designers focus on a gradual release of information. this process is called what
sergeinik [125]
Progressive Disclosure
7 0
3 years ago
Read 2 more answers
What are the types of wholesaler?​
Gala2k [10]

Answer:

1. merchant

2. agent and brokers

Explanation:

Merchant wholesalers buy from manufacturers and sell to other businesses. Agents and brokers are essentially independents who provide buying and selling services.

4 0
3 years ago
Other questions:
  • Todco planned to produce 3,000 units of its single product, Teragram, during November. The standard specifications for one unit
    6·1 answer
  • The range rule of thumb roughly estimates the standard deviation of a data set as​ _______.
    11·1 answer
  • "how does an investor earn money by buying bonds at a discount"
    9·1 answer
  • Lori's Company has the following​ items: cash in a checking​ account, $ 9 comma 000$9,000​; cash in a savings​ account, $ 7 comm
    15·1 answer
  • 3. How have you contributed to solving a challenge and to implementing change or reform?*(Be specific and include: what aspect/s
    10·1 answer
  • Powers drove a truck that his employer leased from Big Trucks. After Big repeatedly failed to respond to Powers' requests to fix
    12·1 answer
  • Costs in beginning work in process inventory was $4,500 and $37,800 in costs were added during the period inder the weighed aver
    15·1 answer
  • Cool People publications focuses their marketing efforts on reaching African-American teenage girls. The firm believes that they
    14·1 answer
  • Each of two stocks, A and B, is expected to pay a dividend of $7 in the upcoming year. The expected growth rate of dividends is
    6·1 answer
  • Boxwood Company sells blankets for $40 each. The following was taken from the inventory records during May. The company had no b
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!