Rule I is correct.
<u>Explanation:</u>
Year Cash flow Pv at 8% Discounted cash flow
0 100000 1 100000
1 26000 0.9259 24074.074
2 26000 0.8573 22290.809
3 26000 0.7938 20639.638
4 26000 0.7350 19110.776
5 26000 0.6806 17695.163
From the above calculation, the net present value is $203810.46
Option 1 Option 2
NPV 203810.5 200000
Payback 5 years 0 years
IRR No IRR No IRR
NPV (Net present value) option say that former would be selected
So, answer is Rule I only.
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Answer:
MIRR = 4.32%
Explanation:
year cash flow
0 -$795,000
1 $375,000
2 -$500,000
3 $600,000
4 $400,000
Since there are 2 cash outflows, the IRR calculation would result in two different answers (1 for every cash outflow), that is why we use the MIRR function in excel.
=MIRR (cash flows, finance rate, reinvestment rate)
=MIRR (-795000 to 400000, 5.5%, 5.5%)
Since we are only given one interest rate, we will use it as our finance rate and our reinvestment rate.
MIRR = 4.32%
Answer:
First-line manager.
Explanation:
A first-line manager is a person within a company who is directly above all other personnel who are not managers. They have various obligations, such as the aforementioned routine decisions, service desk, feedback, work satisfaction, etc. When it comes to some more serious decisions, this type of a manager is not allowed to make them but rather only advise higher ups.
