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4 years ago

Consider the following two mutually exclusive projects:

Business

1 answer:

MatroZZZ [7]4 years ago

8 0

Answer:

1) The IRR of Project X is 10.81%

2) The IRR of Project Y is 10.87%

3) Cross over rate = 9.65%

Explanation:

1) 0 = -$ 15,600 + 6,740/[1+IRR] + 7,320/[1+IRR]^2 + 4,840/[1+IRR]^3

IRR = 10.81%

Therefore, The IRR of Project X is 10.81%

2) 0 = -$ 15,600 + 7,350/[1+IRR] + 7,700/[1+IRR]^2 + 3,690/[1+IRR]^3

IRR Y = 10.87%

Therefore, The IRR of Project Y is 10.87%

3) Cross over rate = 9.65% i.e the rate at which NPVs are equal

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Walter Utilities is a dividend-paying company and is expected to pay an annual dividend of $2.85 at the end of the year. Its div

qwelly [4]

Answer:

The expected rate of return is 17.40%, which is option D.

Explanation:

Hi, to find the expected rate of return, you just have to use the following formula.

$r=\frac{Dividend}{Price} +GrowthRate$

Therefore:

$r=\frac{2.85}{25} +0.06=0.1740$

So, the expected rate of return is 17.40%, in other words, D

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4 years ago

A project will not produce any cash flows for two years. Starting in the third year, it will produce annual cash flows of $11,90

dusya [7]

Answer:

The NPV of the project at 8.7 percent will be 4,802.58‬

Explanation:

We will calcualte the present value of the cash inflow:

$\frac{Inflow}{(1 + rate)^{time} } = PV$

year 3:

Inflow 11,900.00

time 3.00

rate 0.087

$\frac{11900}{(1 + 0.087)^{3} } = PV$

PV 9,265.28

Year 4:

Inflow 11,900.00

time 4.00

rate 0.087

$\frac{11900}{(1 + 0.087)^{4} } = PV$

PV 8,523.71

Year 6:

Inflow 50,500.00

time 6.00

rate 0.087

$\frac{50500}{(1 + 0.087)^{6} } = PV$

PV 30,613.58

Then, we will add them together and subtract the investment amount

NPV: 30,613.59 + 8,523.71 + 9,265.28 - 43,600 = 4,802.58‬

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3 years ago

The government announced that last year it spent $589 million in mandatory outlays and $416 million in discretionary outlays. It

Keith_Richards [23]

Answer:

The Last year, the government had a budget suplus of $ 10 million.

Explanation:

Government expenditure = $589 million + $416 million

= $1005 million.

Government revenue = $1015 million

Government budget suplus = government expenditure - government revenue

= 1005 million - 1015 million

= $10 million

Therefore, The Last year, the government had a budget suplus of $ 10 million.

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3 years ago

The perception that people have of a company is called __________. A. Customer profiling B. Market awareness C. Public relations

Arisa [49]

Answer: Option D

Explanation: In simple words, corporate identity refers to the way in which a business corporation shows themselves to their stakeholders such as customers, investors etc. Many tools such as branding and advertising is used to develop a face for the company in the form of a perception or idea.

This perception and idea settles the image of the company in the eyes of the customer.

Hence from the above we can conclude that the correct option is D.

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3 years ago

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Vladimir79 [104]

Answer:

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4 years ago

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