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gulaghasi [49]
3 years ago
10

Drinkable Water Systems is analyzing a project with projected cash inflows of $127,400, $209,300, and –$46,000 for Years 1 to 3,

respectively. The project costs $251,000 and has been assigned a discount rate of 12.5 percent. Should this project be accepted based on the discounting approach to the modified internal rate of return
Business
1 answer:
Citrus2011 [14]3 years ago
3 0

Answer:

The project should not be accepted.

Explanation:

By using the modified internal rate of return (MIRR) the project offers a discount rate of 10,29% to make the net present value equal to zero. This means that at a discount rate of 12.5% the net present value is negative, and the company would lose money. The company should look for another project with higher inflows for the same initial cost ($251.000)

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Empathy is challenging for many because it doesn’t ____ But It does___
Kisachek [45]

Answer:

Empathy is challenging for many because it doesn’t make immediate impact. But It does have a deep impact in the long run because when the empathized persons feel our demonstration, they will become a trusted ally in life and work.

Explanation:

6 0
3 years ago
You are considering purchasing a new truck that will cost you $34,000. The dealer offers you 1.9% APR within monthly compounding
dmitriy555 [2]

Answer: $31,513.65

my monthly payment (principal) would be closest to $31,514

Explanation:

Using compound interest formula below to find the principal

A = p (1 + r/n)^nt

A= amount = $34,000

r = annual nominal rate = 1.9% = 0.019

n = number of compounding ; monthly compounding means 12 interest payments in a year

P= principal

t= time in years 48months = 48/12years = 4years

34,000 = p (1 + 0.019/12)^12(4)

34,000 = p (1 + 0.00158333333)^48

34,000 = p ( 1.00158333333)^48

34,000 = 1.07889755p

Divide both sides by 1.07889755

P = $31,513.6502

≈$31,514 to nearest whole number.

5 0
4 years ago
Tamarisk, Inc. sells merchandise on account for $2600 to Morton Company with credit terms of 2/7, n/30. Morton Company returns $
allsm [11]

Answer:

cash                1,470

sales discount    30

return goods   1,100

    sales revenue     2,600

to record payment received from Morton Company

Explanation:

on sale:

account receivable   2,600

         sales revenue               2,600

we analize the commercial terms:

2/7 within the first 7 days, paying the invoice generates a 2% discounts

n/30 after that, until 30 days pays the nominal amount

balance at payment date:

sales for                2,600

returned goods:   (1,100)

  balance              1,500

discount 1,500 x 2% = 30

journal entry:

cash                1,470 (1,500 nominal - 30 discount)

sales discount    30

return goods   1,100

    sales revenue     2,600

7 0
3 years ago
When working with the CAPM, which of the following factors can be determined with the most precision?a. The beta coefficient, bi
Evgen [1.6K]

Answer:

c. The expected rate of return on the market rM

Explanation:

The correct option is c. The expected rate of return on the market rM

* The expected market return is the return the investor would expect to receive from a broad stock market indicator such as the S&P 500 Index.

8 0
4 years ago
A recent income statement of McClennon Corporation reported the following data:
arsen [322]

Answer:

The correct answer is option b.

Explanation:

The number of units of output sold is 8,000 .

The sales revenue is $9,600,000 .

The variable costs are $6,000,000 .

The fixed costs are $2,600,000.

The price of the product

= \frac{Sales\ Revenue}{Q}

= \frac{9,600,000}{8,000}

= $1,200

The average variable cost is

= \frac{TVC}{Q}

= \frac{6,000,000}{8,000}

= $750

Profit =  TR - TC

Profit = Price\ \times\ Q - (AVC\ \times\ Q )\ +\ TFC)

$1,270,000 = $1,200Q - $750Q - $2,600,000

$3,870,000 = $450Q

Q = \frac{3,870,000}{450}

Q = 8,600 units

7 0
3 years ago
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