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nasty-shy [4]
3 years ago
9

A firm evaluates all of its projects by applying the IRR rule. The current proposed project has cash flows of -$27,048, $16,850,

$15,700, and $4,300 for years 0 to 3, respectively. The required return is 19 percent. What is the project IRR
Business
2 answers:
laiz [17]3 years ago
8 0

Answer:

The question is incomplete. The completed question is:

A firm evaluates all of its projects by applying the IRR rule. The current proposed project has cash flows of -$27,048, $16,850, $15,700, and $4,300 for years 0 to 3, respectively. The required return is 19 percent. What is the project IRR? Should the project be accepted or rejected?

-16.05 percent; accept

-21.08 percent; reject

-18.30 percent; accept

-21.08 percent; accept

-16.05 percent; reject

The answer is: 21.08 percent; accept

Explanation:

The internal rate of return (IRR) is the discount rate that makes the net present value of a project equal to zero. The net present value(NPV) of a project is the discounted value of all future cash outflows. In this question IRR is calculated via the NPV as follows:

NPV = CF/(1+IRR)^t where t is the time period. Using the given percentage rates, we would carry out the following calculation for each year (year 0 to year 3) at each percentage rate given to determine which rate makes the NPV equal to zero.

Year 0 = - ($27, 048/(1 + 0.2108)^0) = - ($27, 048)

Year 1 =    ($16, 850/(1 + 0.2108)^1)   =  $13, 916.42

Year 2 =    ($15, 700/(1 + 0.2108)^2)  = $10, 709.15

Year 3 =     ($4, 300/(1 + 0.2108)^3)   = <u>$2, 422.43</u>

                                                               <u>        $0       </u>                  

The IRR of 21.08% exceeds the required return of 19% therefore the project is profitable and should be accepted. The IRR model does not take into account the cost of capital and it assumes that all cash flows over the life of the project are reinvested at the IRR.

Westkost [7]3 years ago
6 0

Answer: 21.08%

Explanation:

The IRR is the discount rate that equates the after tax cash flow to the amount invested.

Using the financial calculator to find the IRR;

Cash flow for year zero = -$27,048

Cash flow for year one = $16,850

Cash flow for year two = $15,700

Cash flow for your three = $4,300

IRR = 21.08%

I hope my answer helps you.

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A race car travels northward on a straight, level track at a constant speed travels 0.754 km in 25.0 s. The return trip over the
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Answer:

27.42 m/s

Explanation:

Data provided in the question:

Distance traveled on a straight track = 0.754 km

Time taken to cover while going = 25.0 s

Time taken for the return = 30.0 s

Now,

Total distance covered = 2 × 0.754

= 1.508 Km

= 1508 m

Total time taken = 25 + 30 = 55 s

Therefore,

The average velocity of the car = Total distance ÷ Total time

= 1508 ÷ 55

= 27.42 m/s

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3 years ago
The Phoenix Corporation's fiscal year ends on December 31. Phoenix determines inventory quantity by a physical count of inventor
lutik1710 [3]

Answer:

1. Merchandise held on consignment for Trout Creek Clothing.

  • Excluded from the company's year-end inventory because they belong to another company.

2. Goods shipped f.o.b. destination on December 28 that arrived at the customer's location on January 4.

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3. Goods purchased from a vendor shipped f.o.b. shipping point on December 26 that arrived on January 3.

  • Included in the company's year-end inventory because FOB shipping point shipments transfer ownership after they leave the seller's facilities.

4. Goods shipped f.o.b. shipping point on December 28 that arrived at the customer's location on January 5.

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5. Phoenix had merchandise on consignment at Lisa's Markets, Inc.

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6. Goods purchased from a vendor shipped f.o.b. destination on December 27 that arrived on January 3.

  • Excluded from the company's year-end inventory because FOB destination shipments transfer ownership only after they have been delivered, not while in transit.

7. Freight charges on goods purchased in 3.

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3 years ago
If we wanted to most closely apply the principle of popular sovereignty to control of the bureaucracy, which of the following of
Fofino [41]

Answer:

The correct answer is The president.

Explanation:

Bureaucracy is the organization or structure that is characterized by centralized and decentralized procedures, division of responsibilities, specialization of work, hierarchy and impersonal relations.1 The term is used in sociology, administrative science and, especially, in the public administration. It could be defined as a set of techniques or methodologies arranged to learn or rationalize the external reality (to which it intends to control the central power) in order to know and call it in a standardized or uniform way.2 A clear example of this characteristic of bureaucracies , particularly those of government, is the hiring and assignment or removal of personnel, that is, officials, according to explicit criteria and relevant to the performance of duties.

7 0
3 years ago
Councilwoman moore stepped up to the podium. "i don't think i need to upon reasons for voting against the proposed construction;
S_A_V [24]

Answer:

Expound, cajoled, inscrutable, acrimony, exult, harry, fluctuate

Explanation:

Word banks

Fill in the blanks using these words: fluctuate, cajole, expound, acrimony, exult, inscrutable, metier, and harry.

Councilwoman moore stepped up to the podium. "i don't think i need to expound upon reasons for voting against the proposed construction; i thought that the message was clear enough at the last meeting--when you all opposed it as well. obviously, someone has cajoled a few of you into changing your opinion since last month, and your sudden, inscrutable decision to yield to beta-rad enterprises bothers me a great deal. what happened to the surplus of acrimony  toward beta-rad from the last meeting? don't you remember how we exult in our victory over the radioactive waste dump? for two years, we've listened to beta-rad executives harry us, and we finally had the chance to stop it for good. how could the opinions of fifteen people possibly fluctuate this much?"

word bank:

5 0
3 years ago
Read 2 more answers
Selected data pertaining to Castile Co. for the current calendar year is as follows: Net cash sales: $ 3,000 Cost of goods sold:
kumpel [21]

Answer:

2.0 times

Explanation:

The inventory turnover ratio indicates how efficient a company is in converting its inventory into sales. It shows the number of times a business sells and restocks its inventory in a period.

The formula for calculating inventory turnover is as follows.

Inventory turn over = Costs of goods sold/ Average inventory

For Castile Co.

COGS is $18,000

Average inventory = Beginning inventory + ending inventory /2Beginning inventory = $6,000

if COGS = Beginning inventory + Purchases - Ending inventory

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=$18,000 = $30,000 -ending inventory

Ending inventory = $30,000-$12,000

Ending Inventory =$12,000

Average inventory = $6000+$12,000/2

Average inventory = $9,000

Inventory turnover = $18000/$9000

=2.0

6 0
3 years ago
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