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Tresset [83]
4 years ago
15

What is the IRR for a project that costs $100,000 and provides annual cash inflows of $30,000 for 6 years starting one year from

today?
A) 19.91%
B) 16.67%
C) 15.84%
D) 22.09%
Business
1 answer:
ahrayia [7]4 years ago
8 0

Answer:

A) 19.91%

Explanation:

Net present value of cash flow at 19.91% can be calculated as follows

- 100000 + 30000/1.1991 + 30000/ (1.1991)² + 30000/(1.1991)³ + 30000/ (1.1991)⁴ +30000/(1.1991)⁵ + 30000/ (1.1991)⁶

= -100000 + 25018 +20864 +17400 +14511 +12101 +10092

= 0 ( approx )

So  the IRR for the  project is 19.91 % .

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The _____ adds up the money earned by producers plus taxes paid to the government.
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Polk Company manufactures basketballs. Materials are added at the beginning of the production process and conversion costs are i
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Answer and Explanation:

The computation is shown below:

a.

1. Calculation of the equivalent units

<u>Particulars         Physical units   %     Material   %      Conversion cost</u>

Units transferred

out                          900             100%    900     100%     900

Ending

work in process     600            100%     600     40%       240

Equivalent

units                                                        1,500                  1,140

2. Cost per equivalent unit is

Particulars         Material      Conversion cost

Beginning

inventory           $750               $600

Cost during

period                $2,400            $2,820

Total cost          $3,150             $3,420

Divided by

Equivalent

units                   $1,500            $1,140

Cost per

equivalent unit    $2.1              $3

3. Transferred out cost is

= (3 + 2.1) × 900

= $4,590

And, the ending work in process cost is

= (600 ×$2.1) + (240 × $3)

= $1,960

2. Now the preparation of the production report is presented below:

Beginning work in process       $1,350

Cost during period                    $5,220

Total cost accounted for           $6,570

Transferred out cost                   $4,590

Ending work in process              $1,960

Total cost accounted as             $6,570

3 0
3 years ago
The Sea Wharf Restaurant would like to determine the best way to allocate a monthly advertising budget of $2,000 between newspap
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Answer:

Explanation is given below

Explanation:

Given that, the total budget for the media is only $1,000 per month.

For the allocation, each type of media would get at least 25% of the budget.

Hence, from the available information, we have the following:

Parameters:

$1000 = Monthly advertising budget

25%= Minimum spending for each type of media

50 = Value of the index for local newspaper advertising

80= Value of the index for spot radio advertising

Decision variables;

x1= Newspaper advertising budget

x2= Radio advertising budget

LP Model;

Maximize Z=50x1+ 80x2

Subject to:x1+ x2≤1000

x1≥ 250

x2≥ 250

x1,x2≥ 0

p.s. OptimumZ=72, 500,

x1=250,

x2=750

6 0
3 years ago
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