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
Savatey [412]
2 years ago
15

Modern Federal Bank is setting up a brand-new branch. The cost of the project will be $1.2 million. The branch will create addit

ional cash flows of $235,000, $412,300, $665,000 and $875,000 over the next four years. The firm's cost of capital is 12 percent. What is the internal rate of return on this branch expansion
Business
1 answer:
KonstantinChe [14]2 years ago
3 0

Answer:

23.12%

Explanation:

Internal rate of return (IRR) is the rate at which the Net present value (NPV) of a project equals to zero.

Using a financial calculator and the CF function, input the following to find IRR;

Initial investment; CF0 = -1,200,000

Yr1 cashflow inflow ; C01 = 235,000

Yr2 cashflow inflow ; C02 = 412,300

Yr3 cashflow inflow ; C03 = 665,000

Yr4 cashflow inflow ; C04 = 875,000

Then key in IRR CPT = 23.119%

Therefore, the Internal rate of return this expansion is 23.12%

You might be interested in
Consider a bp gas station. as a result of an economic recession and decreases in consumer incomes, there will be a:
Alina [70]
<span>During an economic recession when the income of consumers has decreased, the BP station (an all gas stations) will see a leftward shift in the demand curve. This will result in gas stations having to lower their prices. If they don't lower their prices, they will have a glut of gasoline that they can't sell.</span>
4 0
2 years ago
A certificate or token that represents a fixed quanity of commodity is called
Talja [164]
This would be called representative money because the token itself is worth money as well as the commodity <span />
8 0
3 years ago
Which of the following is true regarding the Statement of Revenues, Expenses, and Changes in Net Position for a public college c
blsea [12.9K]

Answer:

All of these options is true

Explanation:

Statement of revenue and expenses is a comprehensive report showing the amount of profit earned minus the amount of operating expenses.

It provides information regarding the organization's operation as well as the revenue generated.

Revenue earned is collated as receipts and included in the statement of revenue and expenses.

Regarding the Statement of Revenues, Expenses, and Changes in Net Position for a public college choosing to report as a special-purpose entity engaged in business-type activities, the following apply:

  • State appropriations should be reported as non-operating income
  • Both contributions for plant and for endowment purposes must be reported separately after both operating and non-operating revenues and expenses
  • An operating income figure must be displayed
4 0
2 years ago
A newspaper story on the effect of higher milk prices on the market for ice cream contained the following: "As a result [of the
antoniya [11.8K]

Answer:

The price elasticity of demand for icecream is -0.75, that means that is inelastic.

Explanation:

Price elasticity of demand measures the porcentage of the change in the demand when there is a change in the price. If the change in porcentage of the demand is less than the pocentage of change in the price we talk about inelastic demand. An increase in the price of inelastic goods will result in bigger revenues, as the porcentage in the drop of sales is less than the porcentage   of increase in the price.

The formula is: % in change demand/% in change of price

-3%/4= -0.75

The minus symbol indicates that when the price rises the demand decrease.

4 0
3 years ago
A business ____ is the way a company operates to generate revenues and remain a viable entity.
antoniya [11.8K]
I think the missing word is Plan but I'm not sure.
7 0
3 years ago
Other questions:
  • a. The loss on the cash sale of equipment was $5,125 (details in b). b. Sold equipment costing $46,875, with accumulated depreci
    7·1 answer
  • initial cash investment of $388,000. The project will produce no cash flows for the first two years. The projected cash flows fo
    12·1 answer
  • Riverside Manufacturing designs and manufactures bathtubs for home and commercial applications. Riverside recorded the following
    14·1 answer
  • The following items appear on the balance sheet of a company with a two-month operating cycle. Identify the proper classificatio
    14·1 answer
  • Home expenses can be divided into which two categories
    6·2 answers
  • Explain how each of the following transactions generates two entries—a credit and a debit—in the American balance of payments ac
    7·1 answer
  • An FHA-insured loan in the amount of $57,500 at a 6 ½% interest rate for 30 years was closed on March 17. The first monthly paym
    12·1 answer
  • Due to a number of lawsuits related to toxic wastes, a major chemical manufacturer has recently experienced a market reevaluatio
    9·1 answer
  • Assume that the building the company wants to build is a manufacturing plant and that it was going to be built in a semi-residen
    11·1 answer
  • "The Bureau of Labor Statistics reported in 2005 that there were 50.40 million people over age 25 whose highest level of educati
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!