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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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4 years ago

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Answer:

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3 years ago

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Darrell inherited a large amount of money from his uncle. darrell wishes to start his own business, and his lawyers encourage hi

kompoz [17]

Corporations provide two major benefits over a sole-proprietorship.

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3 years ago

Cash $5,900 $7,000 Accounts receivable 61,400 51,500 Short-term debt investments (available-for-sale) 35,000 18,200 Inventory 40

shepuryov [24]

Answer:

Cash Flow Statements-Indirect Method

Explanation:

Amount in $

Cash Flows from Operating Activities

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Adjustments:

Income Tax Expense 5,600

Income Tax Paid (5,900-3900+5600) (7,600)

Accounts Received (51,500-61,400) 9,900

Short term Investment Made (18,200-35,000) (16,800)

Inventory (60,500-40,000) 20,500

Prepaid Rent (4,100-5000) (900)

Depreciation (25,100-35,200) 10,100

Accounts Payable (40,100-46,100) 6,000

Salaries (4000-8000) 4,000

Gain/Loss on Sale of Equipment (9,400-2,100) 7,300

Cash Generated from operations 60,500

Cash Flows from Investing Activities

Total Assets Purchased (297,300-310,800-19800) (32,500)

Proceeds from sale of equipment (12,200)

Cash Flows from Financing Activities

Dividend Paid ( 6,100)

Short Term Loans (10,000-8,100) (1,900)

Long Term Loans Paid (69,300-60,400) (8,900)

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4 years ago

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Answer:

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Here, Andy couldn't make a deal with Danny even tho he wants what Danny is offering. This is because what Danny isn't interested in what Andy is offering. Thus, the double coincidence of want and barter trade can't occur between the two parties.

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3 years ago