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mariarad [96]
3 years ago
13

Consider the following two mutually exclusive projects:

Business
1 answer:
MatroZZZ [7]3 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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Answer:

D. higher than the equilibrium interest rate.

Explanation:

The Fisher equation at equilibrium ; i = r + τe helps you to answer this question whereby;

i = nominal interest rate

r = real interest rate

τe = expected inflation rate

If we re-write it beginning with real interest rate ; r = i - τe .

So, considering the above equation, if the <em>actual</em> inflation rate turns out to be lower than <em>expected</em> , we will have a lower τe and the difference  (i - τe) will be bigger making the real interest rate higher than equilibrium.

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3 years ago
The following information is available for completed Job No. 402: Direct materials, $120000; direct labor, $180000; manufacturin
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Answer:

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Explanation:

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Overhead  <u>  110,000  </u>

Total cost    410,000

Then we distribute over the units produced to calculate the unit cost:

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total cost 410,000 / units produced 4,000 =<u> 102.5 unit cost</u>

Now we calcualte the value fo the units at hand:

<u>unit at hand refers to ending invnetory</u>

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Conflict begins as team members begin to resist authority and demonstrate hidden agendas and prejudices in the:
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Answer:

Explanation:

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B

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Bud exchanges land with an adjusted basis of $ 22,000 and a fair market value of $ 30,000 for another parcel of land with a fair
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Bud exchanges land with an adjusted basis of $ 22,000 and a fair market value of $ 30,000 for another parcel of land with a fair market value of $ 28,000 and $2,000 cash.

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So, gain or loss to be recognized is :

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