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
Vesnalui [34]
3 years ago
8

The company evaluates all projects by applying the IRR Rule. If the appropriate interest rate is 9%, should the company accept t

his project?

Business
1 answer:
Yuliya22 [10]3 years ago
4 0

Answer: The project should be accepted.

Explanation:

The Internal Rate of Revenue is used to evaluate projects before they are accepted. It is a rate that equates the Net Present Value of cashflows to zero.

If the IRR is higher than the Required return then the Project will be accepted because it means that NPV will be higher than zero. The reverse is true.

Given the cashflows in the question, the IRR is;

= 18.8% according to Excel.

With the IRR higher than the required return of 8%, the project should be accepted.

You might be interested in
a(n) blank market is created when a customs union lifts restrictions on the mobility of services, labor, and capital among membe
Deffense [45]

A common market is created when a customs union lifts restrictions on the mobility of services, labor, and capital among member nations.

<h3>Why was the common market formed?</h3>

Through the removal of the majority of trade barriers and the development of a unified external trade strategy, the EEC was created with the goal of establishing a common market among its members. In order to shield EEC farmers against agricultural imports, the treaty also called for the creation of a unified agricultural policy, which was implemented in 1962.

A free trade zone with a reasonably unrestricted circulation of goods and services is referred to as a common market. When it was a regional organization from 1958 to 1993, the European Economic Community was known as the "Common Market."

In a customs union, all or almost all of a country's imports, exports, and transiting commodities are subject to the same set of processes, regulations, and tariffs. Customs union participants typically have similar trade and competition laws.

Learn more about Common market here:

brainly.com/question/15242077

#SPJ4

7 0
2 years ago
If consideration is received before a contract is identified and the consideration is nonrefundable, revenue may be recognized i
Studentka2010 [4]

Answer: Any of these answer choice is correct.

Explanation:

You didn't put the options to the question. The options are:

• There is no remaining obligation to transactions goods.

• The contract has been terminated.

• Goods have been delivered.

• Any of these answer choice is correct.

When consideration has been received before a contract is identified and the consideration is nonrefundable, then the revenue may be recognized when:

• There is no remaining obligation to transactions goods.

• The contract has been terminated.

• Goods have been delivered

Therefore, the correct option is any of the answer choice is correct.

3 0
3 years ago
The ratio of expenses for merchandise to cost of labor for a small company is 5:3. They spent a total of $15,000 for these two c
chubhunter [2.5K]

They spend on labor 5625. based on the given situations.

Exertions fee ought to be around 20 to 35% of gross income. slicing hard work costs is a balancing act. locating methods to streamline labor costs is rooted in reducing costs without sacrificing personnel morale or productivity.

Hints from White-Hutchinson enjoyment and studying consulting institution say that restaurant labor costs ought to be available in at much less than 30% of sales, and food and exertions costs ought to be less than 60% of the revenue.

The labor-to-revenue ratio is a monetary analysis device that compares the amount of cash a business enterprise spends on its employees to the quantity of cash it makes in net sales. Dividing hard work value via net sales for a given duration yields this ratio. Multiplying the result through 100 converts it to a percentage.

Learn more about labor costs here: brainly.com/question/26527325

#SPJ4

6 0
2 years ago
Dyer Furniture is expected to pay a dividend of D1 = $1.25 per share at the end of the year, and that dividend is expected to gr
zmey [24]

Answer:

Market price: 28.90

Explanation:

We will calculate the stock price using the gordon dividend grow model:

\frac{divends}{return-growth} = Intrinsic \: Value

D1 = 1.25

grow = g = 6% = 6/100 = 0.06

return= for the return, based on the information give, we will calculate it using the CAPM model:

Ke= r_f + \beta (r_m-r_f)  

risk free = 0.04

premium market=(market rate - risk free)= 0.055

beta(non diversifiable risk)= 1.15    

Ke= 0.04 + 1.15 (0.055)  

Ke =cost of capital = return in the dividend grow formula = 0.10325  

Now, we calculate the stock price:

\frac{1.25}{0.10325-0.04} = Intrinsic \: Value

Stock: 28.9017341

Market price: 28.90

8 0
4 years ago
Crystal Industries is considering an expansion project with cash flows of -$287,500, $107,500, $196,100, $104,500, and-$92,700 f
GaryK [48]

Answer:

E. Yes: The MIRR is 9.13 percent.

Explanation:

<em>The First Step is to Calculate the Terminal Value at end of year 4.  </em>

Terminal Value (FV) = Sum of (PV x (1 + r) ^ 5 - n)

                                 = $107,500 x (1.134) ^ 3 + $196,100 x (1.134) ^ 2 + $104,500 x (1.134) ^ 1 + -$92,700 x (1.134) ^ 0  

                                 = $156,764.47 + $252,175,97 + $118,503 - $92,700  

                                 = $434,743.44

<em>The Next Step is to Calculate the MIRR using a Financial Calculator : </em>

- $287,500 CFj

0           CFj

0          CFj

0            CFj

$434,743.44   CFj

Shift IRR/Yr 9.13%

Therefore, the MIRR is 9.13% .

4 0
3 years ago
Other questions:
  • A small manufacturing firm uses roughly 3400 pounds of chemical dye a year. Currently the firm purchases 300 pounds per order an
    6·1 answer
  • Pharoah Company began operations in July 2020. At the end of the month, the company prepares monthly financial statements. It ha
    7·1 answer
  • QRC Company is trying to decide which one of two alternatives it will accept. The costs and revenues associated with each altern
    9·1 answer
  • The price of coffee rose sharply last month, while the quantity sold remained the same. Five people suggest various explanations
    12·1 answer
  • The senior management at a leading global corporation has decided to promote a considerable number of its employees. Since its e
    12·1 answer
  • Year to date, Company Y had earned a 10.8 percent return. During the same time period, Company R earned 12.20 percent and Compan
    11·1 answer
  • The ISO 9000 perspective on quality is that quality is basically defined by: Select one: a. senior management b. customers c. pr
    12·1 answer
  • Suppose the government implements a negative income tax plan to deal with the poverty problem. The negative income tax rate is s
    6·1 answer
  • Match each type of lending institution to its description.
    15·1 answer
  • A bank owns a 10-story office building. In the bank's balance sheet, this would be listed as part of?
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!