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Murljashka [212]
4 years ago
9

Los Angeles Lumber Company (LALC) is considering a project with a cost of $1,000 at Year 0 and inflows of $300 at the end of Yea

rs 1-5. LALC's cost of capital is 10 percent. What is the project's modified IRR (MIRR)?
Business
1 answer:
mariarad [96]4 years ago
8 0

Answer:

MIRR= 12.9%

Explanation:

You can do this on excel using the '=MIRR' function. Enter  the following cashflows on excel;

Initial investment; CF0 = -1,000

Year 1 cashflow; C01 = 300

Year 2 cashflow; C02 = 300

Year 3 cashflow; C03 = 300

Year 4 cashflow; C04 = 300

Year 5 cashflow; C05 = 300

Rate = 10%

then type in "= MIRR ", and the function will pop up, select it and highlight all the cells with the above cashflows, use 10% as finance rate & reinvestment rate and press "ENTER". The MIRR would be; 12.9%

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Explanation:

An increase in input prices will result into a rise in the production costs. This will result in a leftward shift of the supply curve.

Therefore, the market supply will shift inward, driving the equilibrium price higher. This simply means that there will be lesser supply of the product and hence, increase in price.

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a

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Among fatal plane crashes that occurred during the past 55 ​years, 619 were due to pilot​ error, 85 were due to other human​ err
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Relative Frequency = Observed value for each cell / Total frequency * 100

Cause                       Relative Frequency

Pilot Error                           619

Other human error             85

Weather                              574

Mechanical problems        566

Sabotage                            524

Total                                   2368

The total frequency is 2368

The calculation of the relative frequency distribution is

Cause                          Relative Frequency           Result

Pilot Error                         619/2368 * 100              26.14%

Other human error           85/2368 * 100               3.59%

Weather                            574/2368 * 100             24.24%

Mechanical problems      566/2368 * 100             23.90%

Sabotage                          524/2368 * 100             <u>22.13%</u>

Total                                                                          100%

Conclusion: The most serious threat to aviation safety is the Pilot error as it has the highest frequency. Pilot need to be more equipped with understanding and knowledge of how to deal with unexpected event i.e. turbulence, engine failure among others..

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Businesses use LED or other sorts of artificial lighting in order to make the shopping experience pleasant.

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