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klemol [59]
3 years ago
11

Home Security Systems is analyzing the purchase of manufacturing equipment that will cost $95,000. The annual cash inflows for t

he next three years will be: Year Cash Flow
1 $ 48,000
2 46,000
3 41,000
Business
1 answer:
Citrus2011 [14]3 years ago
5 0

Answer:

internal rate of return is 20.463%

Explanation:

given data

Year   Cash Flow

1         $48,000

2         $46,000

3          $41,000

equipment cost = $95,000

to find out

Determine the internal rate of return

solution

we consider here  internal rate of return  is x

so we can say present value of inflows = present value of outflows

equate here

$95000 = \frac{48000}{(x)} +\frac{46000}{(x)^2} +\frac{41000}{(x)^3}  

solve it we get

x = 20.463 %

so internal rate of return is 20.463%

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Preparing journal entries-outputs Hartley Company has a production process that involves three processes. Units move through the
Blababa [14]

Answer:

(It is assume that completed unit have been transferred to next department)

The jounal entries for each transaction is given below.

Cost of units completed in the Cutting Department, $17,000

Debit WIP stamping Dept         $ 17,000

Credit WIP cutting Dept            $ 17,000

Cost of units completed in the Stamping Department, $30,000

Debit WIP polishing Dept              $ 30,000

Credit WIP stamping Dept            $ 30,000

Cost of units completed in the Polishing Department, $35,000

Debit Finished good                     $ 35,000

Credit WIP polishing Dept            $ 35,000

Sales on account, $50,000

Debit GOGS                          $ 40,000

Credit Finished good           $ 40,000

Debit Receivable Account   $ 50,000

Credit Sales                          $ 50,000

6 0
3 years ago
Read 2 more answers
Consider the following two mutually exclusive projects:Year Cash Flow (X) Cash Flow (Y)0 ?$16,400 ?$16,400 1 6,660 7,190 2 7,240
pickupchik [31]

Answer:

1a. 7.12%

b. 6.99%

2. 9.69%

Explanation:

The IRR is the discount rate that equates the after tax cash flows from an investment to the amount invested.

The IRR can be calculated using a financial calculator.

The IRR for project X :

Cash flow in year 0 = $-16,400

Cash flow in year 1 = $6,660

Cash flow in year 2 = $7240

Cash flow in year 3= $4760

IRR = 7.12%

The IRR for project Y :

Cash flow in year 0 = $-16,400

Cash flow in year 1 = $7,190

Cash flow in year 2 = $7,780

Cash flow in year 3 = $3530

IRR = 6.99%

The cross over rate is the rate that equates the cash flow from both projects.

The first step is to subtract the cash flow from project Y from the cash flow of project X

Cash flow for year 0 = $16400 - $16400 = 0

Cash flow for year 1 = $6,660 - $7,190 = $-530

Cash flow for year 2 =$7,240 -$7,780 =$-540

Cash flow for year 3 = $4,760 - $3,530 = $1230

The next step is to find the discount rate using a financial calculator.

Cash flow for year zero = 0

Cash flow for year one = $-530

Cash flow for year 2 =$-540

Cash flow for year 3 =$1230

Cross over rate = 9.69%

I hope my answer helps you

6 0
3 years ago
The Pennsylvania Turnpike is a tolled freeway running through the state of Pennsylvania. Motorists must pay tolls at various poi
slamgirl [31]

Answer: Private good

Explanation:

  According to the given scenario, the Pennsylvania Turnpike is classified the private type of good on the basis of given situation as private good is one of the type of goods that must be purchased by the customers due to its positive advantages or benefits.

The private goods are consumed by the customer in maximum amount in the market as it is one of the essential type of good as it is Rivalry and excludability.  

The following are some example of the private goods are as follows:

  • Food
  • Clothes
  • Fresh air
  • Knowledge

 Therefore, Private good is the correct answer.   

 

4 0
3 years ago
The section of his business plan in which Jones sets forth the purpose of his cabinet-making business-its reason for existing-is
lorasvet [3.4K]

Answer:

The correct answer is letter "C": "Mission Statement".

Explanation:

A company's mission statement represents the objective that the firm must set. That objective must last and should be adaptable to the changes it could be exposed to. It clearly states the purpose of the company and why it exists and operates. The mission statement also identifies by whom the entity is formed and their respective functions.

4 0
3 years ago
An increase in income is always possible with out increasing expenses.<br> O True<br> False
vaieri [72.5K]
The answer is true because you don’t always have to increase your expenses .
3 0
3 years ago
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