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
Alexeev081 [22]
3 years ago
10

Pet World is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's IRR c

an be less than the WACC (and even negative), in which case it will be rejected. Year 0 1 2 3 4 5 Cash flows -$9,500 $2,000 $2,025 $2,050 $2,075 $2,100 Select one:
a. 2.08%
b. 2.31%
c. 2.57%
d. 2.82%
e. 3.10%
Business
1 answer:
Len [333]3 years ago
3 0

Answer:

C) 2.57%

Explanation:

Pet World's net cash flows:

<u>Year  </u>                  <u>Cash flow</u>

0                           -$9,500  

1                             $2,000

2                            $2,025

3                            $2,050

4                            $2,075

5                            $2,100

In order to find the rate of return we can use an excel spreadsheet and the IRR function =IRR (values,[guess]) =IRR (-9500,2000,2025,2050,2075,2100)

=IRR = 2.57%

You might be interested in
Sales (19,500 units at $30 per unit) $585,000 Variable expenses 409,500 Contribution margin 175,500 Fixed expenses 180,000 Net o
vichka [17]

Answer:

                                                                                                   Automated

Sales (19,500 units at $30 per unit)            $585,000            $585,000

Variable expenses                                        409,500               351,000

Contribution margin                                       175,500              234,000

Fixed expenses                                              180,000              252,000

Net operating loss                                          $(4,500)           $( 18,000)

New Cm ratio=  Contribution Margin/ Sales Revenue

                      = $ 234,000 $ 585,000 = 0.4

Break-even point in  dollars=  Fixed Costs/ 1- (variable Cost/ Sales)

                                            =  252,000/ 1- (351,000/ 585,000)

                                             = 252,000/ 1-0.6

                                               = 252,000/0.4= $ 630,000

The resulting $ 630,000 is the break even point at which neither a loss nor a profit is incurred.This can be checked as follows.

Sales                                                                         $ 630,000

Variable Costs  ( 60 % $ 630,000)                          $ 378,000

Contribution Margin                                                   $ 252,000

Less Fixed Expense                                                   <u>$ 252,000</u>

Profit                                                                           <u>       0            </u>

Break even point in units =  Fixed Costs/ Contribution Margin in units

                                         = $ 252,000/ (30-18)

                                          =$ 252,000/ $ 12= 21,000 units

Two Contribution format Income Statements:

                                                                                                   Automated

Sales (26,000 units at $30 per unit)           $780,000            $780,000

Variable expenses                                        546,000               468,000

Contribution margin                                       234,000                312,000

Fixed expenses                                              180,000              252,000

Net operating Profit                                     $ 54,000                $ 60,000

Working:

Variable Costs per unit = $ 409500/19500=  $ 21

After reduction variable costs = $ 21- $3= $ 18

4 0
3 years ago
Building a new mall what will be the input, the conversion, and the output
myrzilka [38]
In building a new mall,

The input would be : Labor,  All materials needed in building a mall

Conversion :  Building process

Output : The actual mall itself

hope this helps
6 0
3 years ago
Henry wants to obtain an entry-level accounting position at a major accounting firm. Which educational degree will assist him in
PilotLPTM [1.2K]

Answer:

C. accounting specialization certificate

Explanation:

entry level position start with a short certificate in accounting

6 0
3 years ago
Read 2 more answers
Bailliere Company recorded cash sales of $300,000 and cost of goods sold relating to those sales of $120,000 on its Excel spread
dezoksy [38]

Answer:

Option B

Cost of goods reported =$ 125,000

Explanation:

<em>Overheads are charged to units produced by the means of using an estimated overhead absorption rate. This rate is computed using budgeted overhead and budgeted activity level. </em>

As a result of this, overhead charged to total units product might be over or under absorbed compared to the actual amount incurred.

<em>The under applied overhead implies that the applied overhead is less than the actual overhead. </em>

This implies that the cost of the goods are under valued. Hence, to accurately valued them, the under applied overhead would be added to the cost of the goods.

Cost of goods reported = cost of goods + under applied overhead

                                       = 120,000 + 5,000 = 125,000

Cost of goods reported =$ 125,000

6 0
3 years ago
Let's say Owen would like to take another loan to pay for new furniture, and the loan payment would be $325 per month. If he too
earnstyle [38]

Explanation:

325 I think buy I am not sure.

8 0
2 years ago
Other questions:
  • Westchester Corp. is considering two equally risky, mutually exclusive projects, both of which have normal cash flows. Project A
    10·1 answer
  • U.s. currency is part of
    12·1 answer
  • When was the articles of confederation written
    13·2 answers
  • PLEASE HELP!!!!! Nicholas starts a taxi cab business. He buys a garage, hires three drivers, buys two taxi-cabs, he sends his ca
    12·1 answer
  • The Armstrong Corporation developed a flexible budget for its production process. Armstrong budgeted to use 10 comma 000 pounds
    10·1 answer
  • Closing entries transfer the balances of all temporary accounts (revenues, expenses, and dividends) to the Common Stock account.
    13·1 answer
  • How many times is income from a c corporation taxed if a retirement fund is the owner of the corporation's' stock?
    8·1 answer
  • A business practice associated with globalization involves businesses moving manufacturing and service centers to countries wher
    7·1 answer
  • Suppose you are planning a summer vacation and book a hotel room online for $149 a night. However, when you get to the reservati
    13·1 answer
  • the rlx company just paid a dividend of $3.10 per share on its stock. the dividends are expected to grow at a constant rate of 4
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!