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Stella [2.4K]
4 years ago
11

Drinkable Water Systems is analyzing a project with projected cash inflows of $137,400, $189,300, and -$25,000 for years 1 to 3,

respectively. The project costs $236,000 and has been assigned a discount rate of 14 percent. Should this project be accepted based on the discounting approach to the modified internal rate of return? Why or why not? Group of answer choices
Business
1 answer:
Rina8888 [55]4 years ago
8 0

Answer:

MIRR is higher than the discount rate, so this project should be profitable and should be accepted.

Explanation:

using the discounting approach to the MIRR:

NPV = 0 = [(-$236,000 - $25,000) / (1 + MIRR)³] + [$137,400 / (1 + MIRR)] + [$189,300 / (1 + MIRR)²]

Using a financial calculator, MIRR = 17.85%

MIRR (17.85%) is higher than the discount rate (14%), so this project should be profitable and should be accepted.

The modified internal rate of return assumes that the initial investment is financed at the interest rate, while the cash generated by the project is reinvested at the firm's WACC.

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If a game is not sold out, the marginal costs to a team accommodating one more fan is(a) Almost infinite.(b) Half the average ti
rosijanka [135]

Answer:

(c) Essentially zero.

Explanation:

The cost of accomodating one more fan in a stadium that is not at full capacity (the game is not sold out) is almost zero because the stadium has the infraestructure to accomodate hundreds or thousands of fans.

The only cost is probably cleaning after the fan in case he or she throws away something in in or around his or her seat.

4 0
3 years ago
What is a system for ordering items that have little or no value at the end of a sales​ period?
lara [203]

a. ​Single-period inventory model

In this model, inventory is ordered once at the beginning of the period, not replenished during the period, and anything left over at the end is scrapped.

4 0
4 years ago
Solartech Corporation, a U.S. exporter, sold a solar heating station to a Japanese customer at a price of 143.5 million yen, whe
Ulleksa [173]

Answer:

$929,404.15 (approx)

Explanation:

The dollar amount actually earned by Solartech after exchanging yen for U.S. dollars :-

= Price ÷ One dollar bought

= 143,500,000  ÷ $154.40 yen

= 143,500,000 ÷ $154.40  yen

= $929,404.15 (approx)

Therefore for computing the dollar amount actually earned by Solartech after exchanging yen for U.S. dollars, we simply divide price by one dollar bought.

3 0
3 years ago
Edna is a 25-year-old employee who is thinking about opening a retirement account. When she checked, she found that her employer
mars1129 [50]

Answer:Go to a broker or bank to open up an IRA account which offers an individual valuable tax benefits for people who want to save for retirement.

Explanation: Since Edna company doesn't offer any tax retirement benefits to its employees, in which they would have offered her a 401(k)s which is usually offered by employers. An IRA will help her have access to various investments Adnan individual retirement saver.

6 0
3 years ago
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Ksju [112]

To review and report on internal controls over sales, purchasing and cash at Downe, your external audit firm should develop points for inclusion in your firm's report on identified internal control deficiencies at Downe.

In the cases described, the central deficiency is in the use of money not specifically allocated for payments and lack of adherence to company policy.

The consequences of these actions at Downe can mean a lack of control, organization and coordination of the flow of income and expenses, leaving businesses without correct records of capital utilization, legal compliance and inventory control.

It will therefore be necessary to restructure Downe's processes in order to implement a new policy that is passed on to all employees to be strictly enforced. In addition to greater control by managers and redesign of the organizational and work structure.

In this way, the company will guarantee that the processes occur in a planned, focused and strategic way, generating an improvement in the organizational culture and better positioning for the company in the market.

Find out more information about external auditor here:

brainly.com/question/25388600

6 0
3 years ago
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