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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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Flu vaccine production requires a lead time of about 6 months. Consider the start of the 21st century when 95 million doses were
IgorLugansk [536]

Answer:

If alpha is 0.2 then 92.6units

If alpha is 0.3 then 91.4units

Explanation:

The calculation can be done by the following formula

F = F + alpha (A-F)

Where

F = Forecast value

A= Actual value

Alpha = exponential smoothing constant

If alpha is taken 0.2

F = 95 + 0.2 ( 83-95)

F = 92.6

If alpha is taken 0.3

F = 95 + 0.3( 83-95)

F= 91.4

7 0
3 years ago
Suppose 1-year T-bills currently yield 7.00% and the future inflation rate is expected to be constant at 4.70% per year. What is
mixas84 [53]

Answer:

2.30%

Explanation:

Data has given as:

Yield for 1 year T-bill = 7.00%

Future inflation rate = 4.7%

In order to find the risk-free rate of return we need to deduct future inflation rate from the yield for the year

Risk-free Rate of return = 1 year T-bill yield - inflation

Risk-free Rate of return = 7.00% - 4.70%

Risk-free Rate of return = 2.30%

5 0
4 years ago
Being a good corporate citizen and contributing to the community are examples of __ responsibilities.
Talja [164]

Answer:

corporate social responsibilities        

Explanation:

Corporate Social Responsibility refers to the form of global self-regulation for private companies aimed at contributing to community objectives of an entrepreneurial, political, or humanitarian type or by participating in or promoting voluntary or ethically focused action.

Although before it was easy to explain CSR as an inner organizational practice or a business ethics technique, the period followed when different international legislation were established and different organizations used their power to move beyond person and even sector-wide programs.

Although it has long been known a type of organizational self-regulation, it has changed significantly over the past decades from voluntary actions at just the individual level companies to compulsory systems at local, domestic and international scale.

4 0
3 years ago
During March, a music store had net sales of $270,000. The gross profit was $121,500 and the operating expenses were $108,000. A
lozanna [386]

Answer:

Gross profit margin = 45%

Net income = $13,500

Net profit margin = 5%

Explanation:

Net sales = $270,000.

Gross profit = $121,500

Operating expenses = $108,000

Gross profit margin = (Gross profit ÷ net sales) × 100

Gross profit margin = $(121,500 ÷ 270,000) × 100

Gross profit margin = 0.45 × 100 = 45%

Net income for March :

Gross profit - Total expenses

$121,500 - $108,000 = $13,500

Net profit margin :

(Net profit ÷ net sales) × 100

(13500 ÷ 270,000) × 100

Net profit margin = 5%

3 0
3 years ago
Kyle owned a small business that sold and repaired several styles of bicycles. Last month, Kyle had sales of $15,000 and the cos
liberstina [14]

Answer:

The business earned a profit.

7 0
3 years ago
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