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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
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UkoKoshka [18]

The fewest number of hours from the graph is 73 hours.

<h3>Equation</h3>

Equation is an expression used to show the relationship between two or more numbers and variables.

Let x represent the number of $10 course and y represent the number of $15 course.

Her goal is to save at least $1000, hence:

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The fewest number is (20, 53)

The fewest number of hours from the graph is 73 hours.

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tino4ka555 [31]
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3 years ago
Armando Company produces and sells mattresses. It expects to sell 10,000 mattresses in the current year and had 1,000 mattresses
Nat2105 [25]

Answer:

Sales= $3,000,000

Explanation:

Giving the following information:

It expects to sell 10,000 mattresses in the current year and had 1,000 mattresses in finished goods inventory at the end of the previous year. Armando would like to complete operations in the current year with at least 1,250 completed mattresses in inventory. There is no ending work-in-process inventory. The mattresses sell for $300 each.

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5 0
3 years ago
Choose the correct alternative regarding tax revenue:
insens350 [35]

The correct alternative regarding tax revenue:

<u>B-Personal income tax is currently the largest source of government revenue in South Africa.</u>

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  • it is levied on earnings and activities conducted.
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<u>Indirect </u><u>Taxes</u>

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5 0
1 year ago
A copy machine cost when new and has accumulated depreciation of . Suppose discards this machine and receives nothing. What is t
Anna [14]

Answer:

$1,000 loss

Explanation:

The numbers are missing here, so I looked for a similar question:

A copy machine cost $5,000 when new and has accumulated depreciation of $4,000.

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