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balu736 [363]
3 years ago
11

Copa Corporation is considering the purchase of a new machine costing $150,000. The machine would generate net cash inflows of $

43,690 per year for 5 years. At the end of 5 years, the machine would have no salvage value. Copa’s cost of capital is 12 percent. Copa uses straight-line depreciation. The present value factors of annuity of $1.00 for different rates of return are as follows:
Period 12% 14% 16% 18%
4 3.0373 2.91371 2.79818 2.69006
5 3.60478 3.43308 3.27429 3.12717
6 4.1141 3.88867 3.68474 3.49760
The proposal's internal rate of return (rounded to the nearest percent) is:__________
A. 14 percent.
B. 16 percent.
C. 18 percent.
D. 12 percent.
Business
1 answer:
eduard3 years ago
4 0

Answer:

A

Explanation:

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 with a financial calculator  

Cash flow in year 0 = $-150,000

Cash flow each year from year 1 to 5 = $43,690

IRR = 14%

To find the IRR using a financial calculator:

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.  

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An annual reporting period consisting of any twelve consecutive months is known as:________.1. Calendar year2. Natural business
11111nata11111 [884]

Answer:

4. Fiscal year

Explanation:

Reporting period refers to the period or time covered by a set of financial statements. It is the accounting period in which a given financial report will be covered. It may either be monthly, quarterly or yearly depending on organization's choice.

Now, fiscal year is an accounting period or reporting period that consist of 12 month used for accounting purposes. It is a yearly reporting period made up of 12 consecutive months. It may or may not correspond to the normal calendar year depending on the organization's choice or decision.

3 0
2 years ago
Suppose the price of hot wings is $10, the price of beer is $1, and the consumer’s income is $50. In addition, suppose the consu
IgorC [24]

Answer:

a. budget constraint intersects the vertical axis at 25 beers.

Explanation:

A budget constraint shows all the combinations that a consumer might purchase of two given products or services. The total consumption can be represented by a consumption possibilities frontier curve:

  • originally you could purchase 50 beers or 5 hot wings
  • then as the price of beer increases to $2, you can only buy 25 beers or 5 hot wings

7 0
3 years ago
Assuming periodic inventory procedure, what effect would an understatement of ending inventory have on the different items on th
Serjik [45]

Answer:

The understatement of the ending inventory balance would result in an overstatement of the cost of goods sold. This will in turn result in an understatement of the gross and net profits for the year in the p/l.

Explanation:

The relationship between the elements of inventory in a financial statement is as shown below,

Opening balance + purchases - cost of goods sold = closing balance

As such, the understatement of the ending inventory balance would result in an overstatement of the cost of goods sold. This will in turn result in an understatement of the gross and net profits for the year in the p/l.

5 0
3 years ago
The following are exogenous (not directly affected by income): G = 11 I = 4 X = M = 0 The consumption function is: C = k + cY, w
nikitadnepr [17]

Answer: the answer is 90.0

Explanation:

From the question above, we are given:

G = 11

I = 4

X = M = 0

Consumption function is:

C = k + cY

Where:

k = 3

c = 0.8

The GDP of a nation is given as:

Y = C + I + G + NX

By imputing the values into the GDP equation, we have:

Y = k + cY + 4 + 11 + 0

Y = 3 + 0.8Y +15

Y - 0.8Y = 18

0.2Y = 18

Y = 90.0

6 0
2 years ago
Certain trends in the recent past have changed the way that businesses are managed and controlled. Four important recent busines
Stolb23 [73]

Answer:

b. Companies are benefiting from e-commerce by buying and selling their products and services to consumers online.

Explanation:

This is the example that shows the pure application of IT in business. E-commerce platforms are something every business that has an online presence has in common. Although businesses can differ by industry or niche, e-commerce is a common information technology trend.

The A. answer may indicate that it is IT related, but it is actually more related to globalization and outsourcing.

4 0
3 years ago
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