1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
natima [27]
3 years ago
12

The internal rate of return method is used to analyze a $831,500 capital investment proposal with annual net cash flows of $250,

000 for each of the six years of its useful life. a. Determine a present value factor for an annuity of $1, which can be used in determining the internal rate of return. Carry your answer out to three decimal places.
Business
1 answer:
Umnica [9.8K]3 years ago
5 0

Answer:

annuity factor for 20% and 6 periods = 3.326

Explanation:

the IRR represents the discount rate at which a project's NPV = 0

NPV = initial outlay + PV of future cash flows

NPV = 0

initial outlay = -$831,500

PV of future cash flows = $831,500 = cash flow x annuity factor

annuity factor = $831,500 / $250,000 = 3.326

using an annuity table and looking for the annuity factors for 6 periods, we find that the annuity factor for 20% and 6 periods = 3.326.

So our IRR = 20%

You might be interested in
Required: Prepare journal entries to record the December transactions in the General Journal Tab in the excel template file "Acc
PtichkaEL [24]

Answer:

journal entries to record the December transactions

1-Dec

Cash $10500 (debit)

Common Stock $10500 (credit)

1-Dec

Rent Expense $950 (debit)

Cash $950 (credit)

1-Dec

Prepaid Insurance $600 (debit)

Cash $600 (credit)

1-Dec

Equipment $3600 (debit)

Cash $3600 (credit)

5-Dec

Supplies Expense $300 (debit)

Accounts Payable $300 (credit)

15-Dec

Cash $7200 (debit)

Service Revenue $7200 (credit)

16-Dec

Accounts Receivable $5200 (debit)

Service Revenue $5200 (credit)

21-Dec

Cash $2400 (debit)

Accounts Receivable $2400 (credit)

23-Dec

Accounts Payable $170 (debit)

Cash $170 (credit)

28-Dec

Wages Expense $4480 (debit)

Cash $4480 (credit)

30-Dec

Dividends $200 (debit)

Cash $200 (credit)

Explanation:

The General Journal consists of Entries of Expenses, Capital Expenditures and Receipts and Payments in Cash.

8 0
3 years ago
A Kubota tractor acquired on January 8 at a cost of $315,000 has an estimated useful life of 10 years. Assuming that it will hav
grandymaker [24]

Answer:

A. Year 2 $31,500

Year 2 $31,500

B. Year 1 = 63,000

Book Value of Tractor $252,000

Year 2 $ 50,400

Book Value of Tractor $201,600

Explanation:

a. Calculation to Determine the depreciation for each of the first two years by the straight-line method

Year 1 = $315,000 / 10

Year 1 = $31,500

Year 2 = $315,000 / 10

Year 2= $31,500

B) Calculation to determine the depreciation for each of the first two years by the double-declining-balance method

Based on the information given we are first going to calculate the percentage of depreciation using straight line method and then double it

Percentage = $ 315,000 *10%

Percentage=$31,500

Now let depreciation the book value each year by 20% Using the double-declining-balance method method

Year 1=20% of $ 315,000

Year 1= 63,000

Book Value=$315,000 - $63,000

Book Value= $ 252,000

Year 2= 20% of 252,000

Year 2 = $ 50,400

Book Value=$ 252,000 -$50,400

Book Value= $201,600

8 0
2 years ago
After all of the account balances have been extended to the Balance Sheet columns of the end-of-period spreadsheet, the totals o
SOVA2 [1]

Answer:

This indicates that

d.the company has a net loss of $9,575 for the period.

Explanation:

a) Data and Calculations:

Total debits of the balance sheet (assets) = $28,480

Total credits of the balance sheet (liabilities + equity) = $38,055

Difference (net loss) = $9,575 ($38,055 - $28,480)

b) With the determination of the net loss of $9,575, the two sides (debits and credits) of the balance sheet will equal.  This is because the net loss of $9,575 will reduce the credits from $38,055 to $28,480.

5 0
3 years ago
suppose that a country imports $90 million worth of goods and services and exports $80 million worth of goods and services. what
Korolek [52]

Consider a scenario in which a nation buys goods and services worth $90 million and exports them for $80 million. The net exports are valued at -$10 million.

<h3>What does a nation's net export mean?</h3>

Total exports less total imports for a specific country is the definition of net exports. It is a method of determining the total outlays or GDP of a country in an open economy.

The balance of trade, commercial balance, or net exports refers to the difference between a nation's exports and imports in terms of dollar value over a given time period. It's sometimes made a point to distinguish between a trade balance for goods and one for services.

In the above question, given:

Imports= $90 million

Exports= $ 80 million

Net Export= Total Exports - Total Imports

Net Export= $ 80 million - $ 90 million

Net Export= -$10 million

Learn more about net exports: brainly.com/question/16905557

#SPJ1

6 0
1 year ago
Managerial responsibilities in the area of organizing include ________.
Elina [12.6K]
They include  planning<span>, </span>organizing<span>, </span>staffing<span>, </span>leading<span>, </span>controlling, and motivating. Have in mind that a manager <span>designs an </span>organization's structure and determine how different aspects of the organization will interact. There have been some systems of  thinking like <span>identifying the moving parts within an organization that add </span>value<span> and ensuring that these parts function together as an </span>effective<span> and </span>efficient<span> whole.</span> 
5 0
3 years ago
Other questions:
  • On May 25, Tyler, Inc. issues 100 shares of $10 par value preferred stock for $5,000 cash. The entry to record this transaction
    6·1 answer
  • Tangerine Tangerine ink Target capital structure is 20% debtthe following information about sleep please Corporation a company h
    9·1 answer
  • If the government and Central Bank don't use economic policy, what could happen?
    13·1 answer
  • Chris Cole is a salesperson for Green Scene Lawn Care products. Chris' job requires him to sell Green Scene products, but he is
    10·1 answer
  • When creditors use the _________, they apply the finance charge only to the amount owed after you've paid your bill each month.
    5·1 answer
  • Primara Corporation has a standard cost system in which it applies overhead to products based on the standard direct labor-hours
    8·1 answer
  • Austin always saves 65% of the money he earns from mowing lawns. find the expression that represents the amount of the money Aus
    8·2 answers
  • This tax is locally assessed, varies according to the worth of land and goods on it, and generally funds things like public scho
    8·1 answer
  • In the boston consulting group growth-share matrix, each of the four categories in the matrix represents ______.
    8·1 answer
  • A rigorous framework for understanding the detailed operations of a business is known as:_______
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!