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
larisa86 [58]
3 years ago
5

Nichols Inc. is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's IR

R can be less than the cost of capital or negative, in both cases it will be rejected.
Year Cash flows
0 −$1,250
1 $325
2 $325
3 $325
4 $325
5 $325

a. 9.43%
b. 9.91%
c. 10.40%
d. 10.92%
e. 11.47%
Business
1 answer:
cestrela7 [59]3 years ago
3 0

Answer:

a. 9.43%

Explanation:

The 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 using a financial calculator.

Cash flow in year zero = −$1,250 

Cash flow each year from year one to five = $325

IRR = 9.43%

To find the IRR using a financial calacutor:

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.

I hope my answer helps you

You might be interested in
The fixed cost element of a mixed cost is the cost of having a service available. true
hichkok12 [17]
Cost is fixed price . services taxes true
3 0
3 years ago
The composition of the Fingroup Fund portfolio is as follows:_________.
exis [7]

Answer: $10.49

Explanation:

Net Asset Value is the equity of the portfolio divided by the number of shares outstanding.

Equity = Assets - Liabilities

So,

Net Asset Value = (Assets - Liabilities) / No. of shares outstanding

Assets = (200,000 * 35) + (300,000 * 40) + (400,000 * 20) + (600,000 * 25)

= $42,000,000

Liabilities will be the accrued management fee.

Net Asset Value = (42,000,000 - 30,000) / 4,000,000

= 10.4925

= $10.49

6 0
2 years ago
Sarah has a toothache. She believes it may be due to her not having regular dental checkups in the past. She now wants to find a
Ilia_Sergeevich [38]

Answer:

Credence properties

Explanation:

Dentistry has a Credence property because it is a Service provided by medical specialized professionals. medical diagnoses and legal services have credence properties, or characteristics. A consumer may find a service with Credence property impossible to evaluate even after purchase and consumption. To reduce this uncertainty, service consumer like Sarah turns to personal sources of information like her friends during the purchase decision process

8 0
3 years ago
How soon upon a customer's arrival into your store should you, the sales associate, greet the customer?
Liula [17]
30 sec at McDonald’s
7 0
3 years ago
Which of the following statements about marketing is true? Multiple Choice A marketing exchange focuses on making a single trans
klemol [59]

Answer:

Marketing only occurs when two or more parties are willing to exchange one thing for another thing.

Explanation:

It is understood that marketing only occurs when two or more parties are willing to exchange one thing for another thing.

5 0
3 years ago
Other questions:
  • The 2013 annual report of Oracle Corporation included the following information relating to their allowance for doubtful account
    15·1 answer
  • Self doubt is a result of ______.
    15·2 answers
  • If the government becomes more heavily involved in subsidizing some businesses and sectors of the economy while levying higher t
    15·1 answer
  • Land is purchased for​ $300,000. Back taxes paid by the purchaser were​ $8,500; total costs to demolish an existing building wer
    8·1 answer
  • A good way to add contrast to business documents is to
    10·2 answers
  • All of the following statements about GDP are false except Group of answer choices Higher GDP reflects more equal distribution i
    12·1 answer
  • The Capitalist Mutual Fund's portfolio is valued at $77.7 million. The fund has liabilities of $5.5 million, and the investment
    15·1 answer
  • How can the image be an example of resource science? A. Chicken is one of the most consumed meats on the planet. B. Agricultural
    5·1 answer
  • Company Name: XXX XXX Coffee Co
    10·1 answer
  • Selected accounts with a credit amount omitted are as follows: Work in Process Apr. 1 Balance 7,500 Apr. 30 Goods finished X 30
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!