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nlexa [21]
3 years ago
11

Gore Global is considering the two mutually exclusive projects below. The cash flows from the projects are summarized below.

Business
1 answer:
coldgirl [10]3 years ago
7 0

Answer:

D

Explanation:

Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested

IRR can be calculated with a financial calculator  

Flying Car

Cash flow in year 0 = -$200,000

Cash flow in year 1 = 50,000

Cash flow in year 2 = 50,000

Cash flow in year 3 =80,000

Cash flow in year 4 =100,000

IRR = 13%

To find the IRR using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.  

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Variable costs as a percentage of sales for Lemon Inc. are 80%, current sales are $600,000, and fixed costs are $130,000. How mu
Stels [109]

Answer:

$8000 (increased)      

Explanation:

Given:

Current sales = $600,000

Variable cost = 80% of Sales = $600,000 x 80% = $480,000

Fixed cost = $130,000

Computation of current Operating Income :

= Current sales - Variable cost - Fixed cost

= $600,000 - $480,000 - $130,000

Net Income = -$10,000

Computation of Operating Income(After new sales) :

= New sales - New Variable cost - Fixed cost

= ($600,000 + $40,000) - 80% of ($600,000 + $40,000) - $130,000

= $640,000 - $512,000 - $130,000

Net income after new sales = - $2,000

Change in income = Net income after new sales - Net Income before new sales

= -$2,000 - (-$10,000)

= $8000 (increase)      

5 0
3 years ago
Suppose a tax of $5 per unit is imposed on a good, and the tax causes the equilibrium quantity of the good to decrease from 200
Burka [1]

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Vancouver, Columbia Británica en minessota

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Con su padre y su madrastra

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5-¿ Qué es lo primero que piensa hacer la protagonista cuando se entera

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6-¿Dónde busca a la pareja para adoptar a su hijo?

7- Cuando está en casa de la pareja, la abogada le habla de

“compensaciones” ¿ a qué crees que se refiere?

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10- ¿Qué te parece el personaje del chico que deja embarazada a Juno?

¿Cómo acaba su relación con él? ¿ Qué crees que harías en una situación

parecida?

3 0
3 years ago
A buy class situation affects buying center tendencies in different ways. If there are many people involved, the problem definit
Natasha2012 [34]

Answer:

A) new buy

Explanation:

A new buy situation is basically when you have to purchase a product or service for the first time. Since the company hasn't purchased this product or service before, the buying team will have to define several aspects for the first time and that takes time (e.g. potential vendors, different product qualities, etc.). There is no precedent buying situation, so the entire process must be completed.

7 0
3 years ago
Dubai Corporation is looking to purchase a building costing $830,000 by paying $265,000 cash on the purchase date, and agreeing
neonofarm [45]

Answer:

Each payment is closest to $41,573.69.

Explanation:

This can be calculated using the formula for calculating the present value of an ordinary annuity as follows:

PV = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (1)

Where;

PV = Present value or the balance to pay for the building = $830,000 - $265,000 = $565,000

P =Quarterly payment or payment after every three months = ?

r = Quarterly interest rate = Incremental borrowing rate / Number of quarters in a year = 16% / 4 = = 4%. or 0.04

n = number of quarters = Number of years * Number of quarters in a year = 5 * 4 = 20

Substitute the values into equation (1) and solve for P, we have:

$565,000 = P * ((1 - (1 / (1 + 0.04))^20) / 0.04)

$565,000 = P * 13.5903263449677

P = $565,000 / 13.5903263449677

P = $41,573.69

Therefore, each payment is closest to $41,573.69.

4 0
3 years ago
A company purchased land for $82,000 cash. Commissions of $8,000, property taxes of $8,500, and title insurance of $2,200 were a
AleksAgata [21]

Answer:

the amount that company should record the land is $97,600

Explanation:

The computation of the amount that company should record the land is shown below:

The Amount should be recorded for land is

= Purchase price + Commission + Property tax paid on behalf of seller + Title insurance

= $82,000 + $8,000 + $5,400 + $2,200

= $97,600

hence, the amount that company should record the land is $97,600

7 0
3 years ago
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