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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

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Answer:

1.8 billion people are employed in System D.

Explanation:

System D is a large informal economy. It is an open economic arena where everything is available. Though it is very large, it doesn’t include two-thirds of the workers in the world. The people who are a part of System D are about 1.8 billion people in the world. The economy is worth $10 trillion per year.

In informal economy varied set of economic activities happen. The enterprises, jobs and workers are not regulated or protected by the state. It is basically mean self-employment in small enterprises.

Yes, United States has an informal economy. Government does not tax or monitor the black market and market of illegal drugs.

5 0
3 years ago
Suppose that from a new checkable deposit, First National Bank holds two million dollars in vault cash, eight million dollars on
Arada [10]

Answer: It has 1 milion dollars in required reserves

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Tot. Res = Vault cash + Deposit with Federal Reserve

Tot. Res = 2 million dollars + 8 million dollars = 10 million dollars

Total reserves are the sum of excess reserves and required reserves .

Tot. Res. = Exce. Res. + Req. Res.

10 million dollars = 9 million dollars = Req. Res.

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4 0
3 years ago
The primary drawback of the edison talking machine for sound recording was:
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Only one recording of a given sound could be made; copies were not possible. 
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4 0
3 years ago
Pepe, Incorporated acquired 60% of Devin Company on January 1, 2017. On that date Devin sold equipment to Pepe for $45,000. The
krek1111 [17]

Answer:

The loss on equipment recognized by Devin on its internal accounting records for 2017 is $9,000

Explanation:

By using the given information which is mentioned in the question, first we have to calculate the book value of equipment.

So, the book value of the equipment is equals to

= Cost price - accumulated depreciation

= $120,000 - $66,000

= $54,000

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Since, the amount shows negative which means the company has suffered a loss of $9,000 on equipment

The other things like net income of 2017 and 2018 is irrelevant because it tells the net income of overall company not for equipment. So, it is not being considered while computation

Hence,  the loss on equipment recognized by Devin on its internal accounting records for 2017 is $9,000

7 0
3 years ago
In 1932, the U.S. government imposed a two-cent tax on checks written on deposits in bank accounts. This action would be expecte
scZoUnD [109]

Answer:

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The federal government made the move in order to balance their budget with he notion that with the introduction of the 2 cents on every bank cheques, it will dissuade people from doing bank deposit and switch to currency which will inturn reduce money supply.

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