Answer:
Multiple IRRs:
Said another way, Multiple IRRs occur when a project has more than one <em>internal rate of return.</em> The problem arises where a project has non-normal cash flow (non-conventional cash flow pattern).
Internal rate of return (IRR) is one of the most commonly used capital budgeting tools. Investors make decisions by comparing the IRR of the project under consideration with the <em>hurdle rate</em>. If the IRR is greater than the hurdle rate, the project is accepted, otherwise it is rejected. When there are more than two IRRs, it is not exactly clear which IRR to compare with the hurdle rate.
Hurdle rate is the minimum required rate of return which businesses use as a benchmark to decide whether to invest in a project or not.
<em>So a typical situation which can generate negative cashflows which can in turn lead to multiple IRRs towards the end of the project is where the conditions of investment become adverse towards the end of the project.</em>
Imagine that toward the end of the lifecycle of a project, a forecasted increase external costs such as Interest Rate, influenced by government policies translates to an erosion of the bottom line generated by the business in that year.
Period 0 1 3 3 4 5
Unconventional cash flows ($)-19,000 16,000 16,000 6,000 6,000 -52,000
The series is non-conventional cash-flow pattern, which has two sign changes. This is the range in which the net present value of the non-conventional cash flow series is positive. The multiple IRR problem poses a series problem to analysts because the decision is not obvious.
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Answer:
The requirement for the next four years higher than the current available capacity.
Explanation:
AlwaysRain Irrigation, Inc., has 3 bronze machines and one injection molding. The bronze machine total available capacity is 60,000 / year which is calculated by 20,000 sprinkles * 3 machines.
For molding machine the available capacity for the year is 320,000 sprinkles per year.
The capacity requirement for next four years will be greater for bronze and the company needs to consider buying more machines.
Answer:
Find attached statement and the question which question number 10.
The correct option is C,$90
Explanation:
In the statement you would notice that the balance transfer from another credit card was $785,upon which balance transfer levy of $23.55 was charged(Section 7)
Intuitively, the percentage of balance transfer charge is $23.55 divided by the amount of balance transfer i.e $785
balance transfer charge(%)=$23.55/$785=3%
However, if the balance transfer were $3000,the charge is 3% of $3000 i.e $90 ($3000*3%).
The correct option then is C,$90
Answer:
A. The balance sheet reports the performance of the firm over the past period. It summaries and categorizes a company's revenues and expenses for that period.
Explanation:
The balance sheet is a financial document or statement that shows a company's total assets at a particular time. It indicates how the assets are financed. A balance sheet reports the net worth of a business. It shows the assets, the liabilities, and the shareholders' equity.
The preparation of a balance sheet follows the principle of assets equals the sum of liabilities and equity. It does not record incomes of expenses of a business for a financial year. The income statement is the financial report that shows the revenue and expenses of a company in a period.
Answer:
goods produced abroad and sold domestically.
Explanation:
Exports are goods produced in the domestic economy and sold abroad.
Quotas limits placed on the quantity of goods leaving a country.
Countries trade goods for which they have comparative advantage and not absolute advantage.
I hope my answer helps you
