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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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One year ago Lerner and Luckmann Co. issued 15-year, noncallable, 7.5% annual coupon bonds at their par value of $1,000. Today,
Dennis_Churaev [7]

Answer:

current price = $1191.79

Explanation:

given data

time t = 15 year

annual coupon bonds rate =  = 7.5 %

par value = $1000

interest rate = 5.5%

maturity time  = 14 year

to find out

current price of the bonds

solution

we get here first annual coupon rate = 7.5% of 1000

annual coupon rate  C = $75

so now we get current price of bond

current price of the bonds = \frac{C}{(1+r)} +\frac{C}{(1+r)^2} +\frac{C}{(1+r)^3} +\frac{C}{(1+r)^4} ..........\frac{C}{(1+r)^{13}} + \frac{C+par\ value}{(1+r)^{14}}      .................1

put here value

current price = \frac{75}{(1+r)} +\frac{75}{(1+r)^2} +\frac{75}{(1+r)^3} +\frac{75}{(1+r)^4} ..........\frac{75}{(1+r)^{13}} + \frac{75+1000}{(1+r)^{14}}  

current price = \frac{75}{(1+r)} \frac{1-(\frac{1}{1+r})^{14} }{r} (1+r) + \frac{1000}{(1+r)^{14}}

solve it we get

current price = $1191.79

4 0
3 years ago
Can I earn by brainly?
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Answer:

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Vladimir79 [104]

Answer:  Option E

Explanation:

A. Poor quality inventory will not be sold leading to excess of it thus it is a reason.

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The appropriate response is Latent Learning. It alludes to learning that exclusive turns out to be clear when a man has a motivating force to show it. Dormant learning is imperative in light of the fact that as a rule the data we have learned isn't generally conspicuous until the minute that we have to show it. 
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3 years ago
The changes in account balances for Elder Company for 2018 are as follows: Assets $ 680,000 debit Common stock 350,000 credit Li
hammer [34]

Answer:

Net income will be $160000

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Explanation:

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4 0
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