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miv72 [106K]
2 years ago
14

1. NPVs, IRRs, and MIRRs for Independent Projects

Business
1 answer:
MrRa [10]2 years ago
8 0

Answer:

IRR for truck = 10.68%

IRR for pulley = 25.41%

Explanation:

The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.

IRR can be calculated using a financial calculator:

Cash flow for the truck :

Cash flow in year 0 = $-19,000

Cash flow each year from year 1 to 5 = 5,100

IRR = 10.68%

Cash flow for the pulley :

Cash flow in year 0 = $-20,000

Cash flow each year from year one to five = $7,500

IRR = 25.41%

To find the IRR using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.

I hope my answer helps you

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If amazon had decided to design and manufacture the kindle and all its components in the united states, what do you think the co
Scrat [10]

Answer:

Brief summary of the case:

The case deals about the evolution of kindle by Company A. When the company decided to introduce kindle, its price was $399 in 2007. Company A understood that to be successful against the huge competitors, kindle must be priced low. It must be highly reliable, many features and elegance must be provided in the design of kindle. "Company A- designed kindle in State C where the research and development expertise is available.

Market research firm "IS," estimated that the manufacturing cost of kindle is about $185. The expensive components of the kindle are the display used in the Electronic ink technology and wireless cord. Company A contracted with Country C's company to produce the display. A manufacturer in Continent A produced a wireless cord of $13. Many components were contracted to the different countries to reduce the cost of the kindle to be competitive. Now, kindle became the competitor to the massive companies.

Determine if the company has decided to manufacture all the components of Electronic reader K in Country U:

If Company had decided to manufacture all the components in Country U, then it would have been more expensive. Company A cannot sell that at an affordable price. Increase in the cost of the components would increase the overall cost of the Electronic reader K. The most important strategy of Company A is to minimize the cost of the product to increase the number of sales.

Increase in the manufacturing cost will dilute their competitive advantage and it increases the cost of the product. It will lower the sales and the buyers would prefer to use the competitors' products, which are cheaper.

Determine if the company has decided to manufacture all the components of Tablet F in Country U:

It would be expensive if they decide to manufacture the components in Country U. It will not affect the sales number like Electronic reader K. as Tablet F is multipurpose. People will prefer quality and specifications than price.

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Manufacturing in Country U would be expensive and it increases the overall cost of the product. It would affect sales of the products.

3 0
3 years ago
Which of the following is a non-depository intermediary?
Rina8888 [55]

Answer:

d

Explanation:

i did it

8 0
3 years ago
Riley is a 50% partner in the RF Partnership and has an outside basis of $56,000 at the end of the year prior to any distributio
Savatey [412]

Answer:

The land basis will be $8,000 and partnership basis will be $42,000.

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The outside basis at the end of the year is $56,000.

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The fair value of land is $14,000.

The land basis to RF is $8000.

The partnership basis will be

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So, the land basis will be $8,000 and partnership basis will be $42,000.

5 0
3 years ago
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Answer:

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Answer:

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