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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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2 years ago
During the year, Next Tec Corp. had the following cash flows: receipt from customers, $10,000; receipt from the bank for long-te
VikaD [51]

Answer:

The net financing cash flows is $5000 as shown below.

Explanation:

The net financing cash flows is calculated below:

Receipt from bank for long-term borrowing  $6000

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Net financing cash flows                                  $5000

Receipt of $10000 relates to operating cash flows as it is cash receipt in the ordinary course of business

Payment to suppliers of $5000 is an operating cash flow as well as suppliers are paid for supplying the items that the business deals in, same applies to payment to workers of $2000.

Lastly, the payment for machinery of $8000 relates to investing activities of the business as it an expenditure incurred to generate more returns.

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2 years ago
Market-skimming prices make sense under the following conditions EXCEPT if ________. a. there is a sufficient number of buyers w
earnstyle [38]

Answer:

c.

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the product is a "me-too" and contains no new technology or points of difference

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3 0
3 years ago
Baton Company estimates that the amounts for total depreciation expense for the year ending December 31 will be $120,000 and for
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Answer:

$80,000

Explanation:

The computation is shown below:

Total depreciation expenses = $120,000 × (3 months ÷ 12 months)

                                                = $30,000

Year end bonuses to employees = $200,000 × (3 months ÷ 12 months)

                                                       = $50,000

So, the total amount of expense would be

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How will the cpi influence the economy?​
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Explanation:

When the CPI is rising it means that consumer prices are also rising, and when it falls it means consumer prices are generally falling. In short, a higher CPI indicates higher inflation, while a falling CPI indicates lower inflation, or even deflation.

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2 years ago
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