Whose goal follows most of the features of a SMART goal?

Consider the following two mutually exclusive projects:Year Cash Flow (X) Cash Flow (Y)0 ?$16,400 ?$16,400 1 6,660 7,190 2 7,240

pickupchik [31]

Answer:

1a. 7.12%

b. 6.99%

2. 9.69%

Explanation:

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

The IRR can be calculated using a financial calculator.

The IRR for project X :

Cash flow in year 0 = $-16,400

Cash flow in year 1 = $6,660

Cash flow in year 2 = $7240

Cash flow in year 3= $4760

IRR = 7.12%

The IRR for project Y :

Cash flow in year 0 = $-16,400

Cash flow in year 1 = $7,190

Cash flow in year 2 = $7,780

Cash flow in year 3 = $3530

IRR = 6.99%

The cross over rate is the rate that equates the cash flow from both projects.

The first step is to subtract the cash flow from project Y from the cash flow of project X

Cash flow for year 0 = $16400 - $16400 = 0

Cash flow for year 1 = $6,660 - $7,190 = $-530

Cash flow for year 2 =$7,240 -$7,780 =$-540

Cash flow for year 3 = $4,760 - $3,530 = $1230

The next step is to find the discount rate using a financial calculator.

Cash flow for year zero = 0

Cash flow for year one = $-530

Cash flow for year 2 =$-540

Cash flow for year 3 =$1230

Cross over rate = 9.69%

I hope my answer helps you

6 0

3 years ago

A key limitation of balance sheets in financial analysis is that: A) liquidity and solvency ratios require information from othe

tatyana61 [14]

Answer: Option (B) is correct.

Explanation:

The three limitations to balance sheets are as follow:

1.) Assets are being noted or stored at a historical cost,

2.) There is a thorough use of the estimates,

3.) There's also omission of several precious non-monetary assets.

Therefore from the given options, we can state that the key limitation of using a balance sheets under the constraints of financial analysis is that different items in a balance sheet are or may be evaluated differently.

8 0

3 years ago

A successful quality strategy begins with

creativ13 [48]

Answer: An organization that starts and builds quality.

Explanation: To have a successful quality strategy, an organization needs to build and instill quality in their employees. When an organization promotes and maintains a quality environment for their workers, they are more likely to have a higher level of output quality.

3 0

3 years ago

Cheshire Corporation purchases a machine for $125,000. It has an estimated salvage value of $10,000 and is expected to produce

densk [106]

Answer: Depreciation for the first year = 17825

Explanation:

Given:

Machine purchased for $125,000

Salvage value of $10,000

Output = 100,000

First year of operation, Output = 15500

First, we'll evaluate depreciation per unit over the entire life of the machine:

i.e. $Depreciation\ per\ unit = \frac{ Purchasing\ cost - Salvage\ value}{Total\ units\ produced}$

Depreciation per unit = $\frac{125000 - 10000}{100000}$

Depreciation per unit = 1.15

Now, we'll compute the depreciation for the first year:

Depreciation for the first year = Depreciation per unit × Output (first year)

Depreciation for the first year = 1.15 × 15500

Depreciation for the first year = 17825

7 0

2 years ago

Read 2 more answers

Louise McIntyre's monthly gross income is $2,000. Her employer withholds $400 in federal, state, and local income taxes and $160

GREYUIT [131]

Answer:

a) 27.2%

b) No

Explanation:

Given:

Monthly gross income = $2,000

Federal, state, and local income taxes = $400

Social Security taxes per month = $160

IRA per month = $80

Monthly credit payments for Visa, = $35

Monthly credit payments for MasterCard, = $30

Monthly credit payments for Discover cards = $20

Automobile loan payment = $285

Now,

Net income of Louise = Gross income - Total Taxes - IRA

= $2,000 - ( $400 + $160 ) - $80

= $1,360

Total debt payments = Credit card payments + Automobile loan payment

= ( $35 + $30 + $20 ) + $285

= $370

Therefore,

Debt payments-to-income ratio = $\frac{\textup{Debt payments}}{\textup{Net income
}}$

= $\frac{\textup{370}}{\textup{1,360}}$

= 0.272

or

= 0.272 × 100% = 27.2%

(b) An individual should not spend more than 20% of their net income as debt to be within the means.

Since, the debt payments-to-income ratio exceeds 20 percent of her net income.

Hence, Louise is not living within her means

6 0

3 years ago