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
Murrr4er [49]
3 years ago
9

Barron Chemical uses a thermoplastic polymer to enhance the appearance of certain RV panels. The initial cost of one process was

$130,000 with annual costs of $49,000 and revenues of $78,000 in year 1, increasing by $1000 per year. A salvage value of $23,000 was realized when the process was discontinued after 8 years. What rate of return did the company make on the process? Solve by trial and error and verify i* by spreadsheet.
Business
1 answer:
lesya [120]3 years ago
7 0

Answer:

19.17%

Explanation:

initial cost = -$130,000

cash flow year 1 = $78,000 - $49,000 = $29,000

cash flow year 2 = $29,000 + $1,000 = $30,000

cash flow year 3 = $30,000 + $1,000 = $31,000

cash flow year 4 = $31,000 + $1,000 = $32,000

cash flow year 5 = $32,000 + $1,000 = $33,000

cash flow year 6 = $33,000 + $1,000 = $34,000

cash flow year 7 = $34,000 + $1,000 = $35,000

cash flow year 8 = $35,000 + $1,000 + $23,000 = $59,000

using an excel spreadsheet and the IRR function, we can determine the project's IRR = 19.17%

The IRR is the discount rate at which the NPV of the project would equal 0. If you are going to try to solve it by trial and error you can prepare an equation and then try to solve it by approximation:

$130,000 = $29,000/(1+r) + $30,000/(1+r)² + $31,000/(1+r)³ + $32,000/(1+r)⁴ + $33,000/(1+r)⁵ + $34,000/(1+r)⁶ + $35,000/(1+r)⁷ + $59,000/(1+r)⁸

Just replace r and start increasing or decreasing as the value approaches to $130,000

You might be interested in
Drag the tiles to the correct boxes to complete the pairs. Match the different types of communications with their descriptions.
Katarina [22]

Answer:

Matching the different types of communications with their descriptions:

Types of Communication  Descriptions

business letter                 : a formal way to communicate with people        

                                           outside your organization

business report               : a way to communicate financial information

note                                  : an informal handwritten message

memorandum                  : a formal way to communicate with people

                                           inside your office

Explanation:

a) Data:

Types of Communication:

business letter

business report

note

memorandum

Pairs

a formal way to communicate with people outside your organization

an informal handwritten message

a formal way to communicate with people inside your office

a way to communicate financial information

b) In Business, choosing the means of clear communication is very essential.  The format used to communicate internally is not the same format for communicating externally.  Even, within an organization, there are still different communication formats.  A handwritten note can be used instead of memorandum for some communications depending on the formality required.  Presenting a business report is more formalized than a handwritten note, for instance.

7 0
3 years ago
___________ income is the amount that is used to calculate how much tax you owe.
snow_tiger [21]

Answer:

<em>Taxable Income</em> is the amount that is used to calculate how much tax you owe.

8 0
2 years ago
business to business is selling to a customer that is not the end of the consumer. which of these best describe the business to
ololo11 [35]

Answer:

so where's the Question?

5 0
2 years ago
Managerial accounting differs from financial accounting in that managerial accounting A. is required by Generally Accepted Accou
snow_tiger [21]

Answer:

The correct option is (b)

Explanation:

Managerial accounting is for internal purpose for the managers for decision making. It is not mandatory as per GAAP, unlike financial accounting. Transactions are recorded as per the understanding of managers and not as per specific standards,

Managerial accounting focuses on data being relevant and not necessarily objective. Since, it caters to internal users, it is customized as per their requirement. Financial accounting, on the other hand needs to be highly objective as it caters to a wider audience who need transparent and reliable financial information.

Therefore, managerial accounting focuses on data relevance over data objectivity.

4 0
3 years ago
Brent is a full-time exempt employee in Clark County, Indiana. He earns an annual salary of $39,360 and is paid semimonthly. He
serious [3.7K]

Answer:

  • Federal Income tax ⇒ $80
  • FICA ⇒ $125.46
  • State income tax ⇒ $52.97
  • Local deduction - Clark County Income tax ⇒ $29.52

Explanation:

Brent gets paid semi-monthly so his pay per period is:

= 39,360 / (12 months *2)

= $1,640

Based on the table therefore, his federal tax is:

= $80

This figure is based on the intersection between income of $1,640 and 3 withholding allowances.

FICA tax rate is 7.65% so his FICA tax is:

= 1,640 * 7.65%

= $125.46

State income tax = $52.97

Local deduction - Clark County Income tax = $29.52

Total deductions:

= Federal tax + FICA + State income tax + Clark County income tax

= 80 + 125.46 + 52.97 + 29.52

= $287.95

3 0
3 years ago
Other questions:
  • A homemaker enters the work force, taking a job that will pay $40,000 over the year. the homemaker must pay $16,000 over the yea
    9·1 answer
  • Flash E - Card Manufacturing manufactures software parts for the computer software systems that produce e - cards. The Flash II
    13·1 answer
  • The _____is a personality assessment model that taps basic dimensions encompassing most of the significant variation in human pe
    13·1 answer
  • If your consumption function looks like C=$97+.92Yd and your disposable income is 100 then your savings is
    8·1 answer
  • Waterway Company reports the following financial information before adjustments. Dr. Cr. Accounts Receivable $145,600 Allowance
    7·1 answer
  • Which type of critic expresses thoughts with precision, clarity, and grace, through the careful building up of ideas, a presenta
    8·1 answer
  • All other factors being equal, what would the premium be like in a survivorship life policy as compared to the premium in a join
    9·1 answer
  • When Hertz Rent-a-Car decides to expand its fleet, several companies as well as consumers will be involved. Financial services w
    6·1 answer
  • What does the phrase high risk = High reward mean when it comes to investing?
    12·1 answer
  • As explained in your textbook, a ________ is a systematic series of actions that leads to a specific result or product.
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!