Answer:
inflation rate= 5.8%
Explanation:
Giving the following information:
An investment offers a total return of 12.8 percent over the coming year. Janice thinks the total real return on this investment will be only 7 percent.
<u>The real return on investment includes the effect on inflation. </u>
Real rate of return= total return - inflation rate
0.07=0.128 - inflation rate
inflation rate= 0.058= 5.8%
Hello,
A fact is something that has been learned.
I think, Im not 100% sure!
Answer:
Project A Project B
Initial investments ($170,000) ($115,000)
CF Year 1 $42,500 $34,500
CF Year 2 $58,500 $52,500
CF Year 3 $82,795 $68,500
CF Year 4 $92,900 $68,500
CF Year 5 $67,500 $68,500
using an excel spreadsheet and the IRR function, the internal rate of return of each project is:
- Project A's IRR = 26.02%
- Project B's IRR = 36.31%
We can use the discount rate (12%) to calculate the projects' NPV, we do not need it to calculate their IRR:
- Project A's NPV = $70,855
- Project B's NPV = $88,815
Answer:
The pencils are 11 dollars.
Explanation:
110/10 is 11
11 times 10 is 110
11 + 11 + 11 + 11 + 11 + 11 + 11 + 11 + 11 + 11 = 110
Answer:
It is cheaper to make the part in house.
Explanation:
Giving the following information:
Harrison Enterprises currently produces 8,000 units of part B13.
Current unit costs for part B13 are as follows:
Direct materials $12
Direct labor 9
Factory rent 7
Administrative costs 10
General factory overhead (allocated) 7
Total $45
If Harrison decides to buy part B13, 50% of the administrative costs would be avoided.
To calculate whether it is better to make the par in-house or buy, we need to determine which costs are unavoidable.
Unavoidable costs:
Factory rent= 7
Administrative costs= 5
General factory overhead= 7
Total= 17
Now, we can calculate the unitary cost of making the product in-house:
Unitary cost= direct material + direct labor + avoidable administrative costs
Unitary cost= 7 + 5 + 5= $17
It is cheaper to make the part in house.
