The answer is c) double-click between column headers
Direct costs are expensed, Indirect costs are expensed
Answer:
Answer is given in the attachment.
Explanation:
Answer:
IRR= 14,96%
The firm should not accept the project, due o the fact that the internal rate of return is lower than the required return. (14,96%<16%)
Explanation:
The internal rate of return (IRR) is a metric used in capital budgeting to estimate the profitability of potential investments. The internal rate of return (IRR) rule is a guideline for evaluating whether to proceed with a project or investment. The IRR rule states that if the internal rate of return on a project or investment is greater than the minimum required rate of return, then the project or investment should be pursued. If it is lower than the cost of capital or required rate o return, the best course of action is to reject the project.
$0 = (initial investment x -1) + CF1 / (1 + IRR) ^ 1 + CF2 / (1 + IRR) ^ 2 + ... + CFX / (1 + IRR) ^ X
Initial Invesment= Total initial investment costs year x-1
CFx= Cash Flow during period X
IRR= Internal rate of return
Because of the nature of the formula, however, IRR cannot be calculated analytically and must instead be calculated either through trial-and-error or using software programmed to calculate IRR.
<u>In this case:</u>
IRR= -27200+ 11200/(1+IRR)^1 + 14200/(1+IRR)^2 + 10200/(1+IRR)^3
IRR= 14,96%
The firm should not accept the project, due o the fact that the internal rate of return is lower than the required return. (14,96%<16%)
Answer:
$76,000
Explanation:
Data provided in the question:
Principal amount left to pay on mortgage = $80,000
Appraised value of the home = $156,000
Now,
The equity she is having in her home in her home will be
= Appraised value of the home - Principal amount left to pay on mortgage
or
The equity she is having in her home in her home = $156,000 - $80,000
or
The equity she is having in her home in her home = $76,000
