The better the IRR, the better. but, a corporation may additionally decide on a mission with a decreased IRR as it has other intangible advantages, together with contributing to a larger strategic plan or impeding competition.
Solution:
NPV of Project S= -$1,000 +$895.03/(1+10.5%) + $250//(1+10.5%)^2 +$10//(1+10.5%)^3 +$5//(1+10.5%)^4 =25.49320776
IRR of Project S= -$1,000 +$895.03/(1+r%) + $250//(1+r%)^2 +$10//(1+r%)^3 +$5//(1+r%)^4 =0
IRR =12.80%
NPV of Project L = -$1,000+ $5/(1+10.5%) +$260/(1+10.5%)^2 + $420/(1+10.5%)^3 + $802.50/(1+10.5%)^4
=$67.01
IRR of Project L=
-$1,000+ $5/(1+r%) +$260/(1+r%)^2 + $420/(1+r%)^3 + $802.50/(1+r%)^4 =0
IRR =12.700%
Project L is better than Project S since L has higher NPV
IRR of Project L is 12.7%.
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Answer:
okay lol
Explanation:
answer my newest question and i'll give it to you <3
Answer:
$20,000
Explanation:
If the Rubber Division was dropped at the beginning of last year, the financial advantage (disadvantage) to the company for the year would have been: the segment's margin of $20,000
The president considering the elimination of this division is not advisable. As long as none of the allocated common corporate fixed costs could be avoided, If the Rubber Division was dropped at the beginning of last year, the financial disadvantage to the company for the year would have been it's contributed margin that went towards off-setting corporate fixed costs.
Furthermore, if this segment is closed, it would affect the Cork division because it would be reporting a lower net operating income of $90,000 as a result of bearing all the corporate costs alone.
Answer:
The answer is C.
Explanation:
As the general price level decreases or falls, people will want to hold less money, so the interest rate falls.
As price level falls, value of money decreases because a unit of money will more of goods or services.
During this period people will want to hold less money because of the decrease in value and the excess money will be deposited in banks.
With this, the banks have more money to lend out and this will make the bank to reduce its Interest rate.
The answer is A. direct loans, and C. work-study programs.
