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
Katena32 [7]
3 years ago
6

Warr Company is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's pr

ojected IRR can be less than the WACC or negative, in both cases it will be rejected. Year 0 1 2 3 4 Cash flows -$1,300 $450 $450 $450 $450 14.16% 14.42% 15.31% 15.84% 16.23%
Business
1 answer:
BartSMP [9]3 years ago
4 0

Answer:

Option B, IRR is 14.42%

Explanation:

The IRR is the rate of return that equates the cost of the project to the present value of cash flows receivable from the project in future.

Using an excel approach, the formula formula IRR is given as:

=irr(values)

The values in this case are

-$1300 in  year 0

$450 in year 1

$450 in year two

$450 in year 3

$450 in year 4

The irr gives 14.42% as shown in the spreadsheet attached

The cost of the investment of the investment project of $1300 equals the present values of its cash flows at 14.42% rate of return

Download xlsx
You might be interested in
An economy initially has 200 units of physical capital per worker. Each year, it increases the amount of physical capital by 10%
tatyana61 [14]

Answer:

266,2 units of capital per worker

Explanation:

The capital growth as stated is compound growth. Since technology and human capital are constant, there is not expected changed in productivity factors relationship, so the formula for compound growth, in this case, is: capital per worker in 3 years' time = capital per worker * (1+ annual rate growth) ^ 3. Computing numbers would be: capital per worker in 3 years' time = 200*(1+10)^3= 266,2

4 0
3 years ago
ABC Company listed the following data for the current year:
RideAnS [48]

Answer:

$10,800 underapplied

Explanation:

Calculation for If overhead is applied based on machine hours, the overapplied/underapplied overhead is:

Overhead machine hours=[($1,044,000/24,000)×23,600]-1,037,400

Overhead machine hours=($43.50 x 23,600) - 1,037,400

Overhead machine hours=$1,026,600- 1,037,400

Overhead machine hours= $10,800 underapplied

Therefore If overhead is applied based on machine hours, the overapplied/underapplied overhead is:$10,800 underapplied

5 0
3 years ago
Label the statements as increasing GDP in either Canada or the United States.
Sidana [21]

Answer:

Increasing Canadian GDP:

-Toyota, a Japanese company, manufactures cars in Toronto, Ontario.

-ATI Technologies, a Canadian company, operates in Alberta.

Increasing American GDP:

-Toyota, a Japanese company, manufactures cars in San Antonio, Texas.

-Starbucks, a U.S. company, opens stores in New York state.

-Tim Horton's, a Canadian company, opens coffee shops in New England.

Explanation:

Gross domestic product (GDP) is the sum of all final goods and services produced in an economic space for a certain period, usually one year, excluding the intermediate consumption used in production. Until the 1980's, the use of Gross National Product (GNP) was preferred, a measure almost identical to GDP but incorporating goods and services produced by external factors. The variation in this macroeconomic magnitude is often used to measure economic growth.

5 0
3 years ago
What should you do to elicit the most useful data in your interviews? Ask primarily yes-or-no questions. Ask leading and ambiguo
grin007 [14]

Answer:

Make your questions objective and friendly.

Explanation:

An interview is an essential step in the process of selecting a candidate to fill a position in a company.

Through the interview, verbal and non-verbal data are collected that will help in the relationship between the profile of the interviewed candidate and the profile expected to fill the vacancy.

It is important that the interviewer uses some techniques to make the interview flow effectively, the first of which is to maintain a friendly posture, as it is common for candidates for an interview to feel intimidated or anxious due to the selection process.

It is also essential that the questions are objective and honest, so that there is a correct understanding and the candidate can answer correctly and effectively.

And the interview should be a step that does not cause intimidation and lack of ethics on both sides, it is ideal that the candidate feels motivated to ask relevant questions to answer their doubts, and that the interviewer conducts the interview schedule in an effective way.

5 0
3 years ago
When Patey Pontoons issued 6% bonds on January 1, 2018, with a face amount of $600,000, the market yield for bonds of similar ri
miskamm [114]

Answer:

Follows are the solution to this question:

Explanation:

Some of the missing data is defined in the attached file, please find it.

Bond problem rates  

Diagram values are based on the following:

N = 4\times 2 \\\\

    = 8 \ Years \\

i = 10.00 \% \times  \frac{1}{2} \\\\

  = 5.00 \% \\

\left\begin{array}{ccc} Cash \ Flow&\ \ \ \ \ \ \ Table \ Value  \times  Amount& \ \ \ \ \ \ \ \ =  Present \ Value\\ Principal  &0.676839 \times  \$ 600,000&    =\$ 406,104 \\ Semi-annual \ interest& 6.463213  \times \$ 18,000 &   =\$ 116,337\end{array}\right \\

Bond issuance price                                                                    

Timetable for bond amortization:  

please find the attachment.

5 0
3 years ago
Other questions:
  • In recent years, the government of Pakistan has established a support price for wheat of about $0.20 per kilogram of wheat. At t
    12·1 answer
  • Susan is creating a spreadsheet and she needs to enter the days of the week in column A.Susan should ?
    13·1 answer
  • Which of the following statements accurately describes the relationship between global and domestic marketing?
    11·1 answer
  • A residential property is greatly diminished in value because of the constant noise of jets taking off from a recently expanded
    6·1 answer
  • If the company budgets to need 4000 units to sell for a month, has a beginning inventory of 1000 units and a desired ending inve
    7·1 answer
  • Which of the following is not an economic goal that influences how societies answer the three key economic questions?
    11·2 answers
  • Kari has been saving money for college for the past four years; she thinks that she is close to her goal amount of $30,000 which
    12·1 answer
  • Roger works as a sales manager for Hi-Tech Solutions, a company that performs software consulting services. While working for Hi
    5·1 answer
  • If you invested $250 at 16% how much will have after 4.5 years
    14·2 answers
  • if there is an increase in the demand for a good, what will happen to the equilibrium price and quantity of the good exchanged?
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!