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kakasveta [241]
3 years ago
8

Internal Rate of Return Lisun Company produces a variety of gardening tools and aids. The company is examining the possibility o

f investing in a new production system that will reduce the costs of the current system. The new system will require a cash investment of $4,607,200 and will produce net cash savings of $800,000 per year. The system has a projected life of 9 years.
Required:

Calculate the IRR for the new production system.
Business
1 answer:
eimsori [14]3 years ago
6 0

Answer:

Internal Rate of Return (IRR) = 10%

Explanation:

The computation of IRR for the new production system is shown below:-

PV factor for Internal Rate of Return = Investment cost ÷ Annual net cash savings

PV factor for Internal Rate of Return = $4,607,200 ÷ $800,000

= 5.759

The PV factor 5.759 in Present value of a Annuity of $1 table for 9 years is closest to 10%

Internal Rate of Return (IRR) = 10%

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artcher [175]

Answer:

b.it is best to ignore sunk costs and keep the bed & breakfast operating.

Explanation:

The owner of the store will face the mortgage cost wether the bed and breakfast is open or closed therefore it should be ignore in the short-term for the decision wether or not to keep the business open.

The business revenues are 6,000 while their cost 4,000 thie means there is a contribution of 2,000 then we subtract the mortage to get a loss 1,000

If closed the losses will increase to 3,000 asthe mortage expense would not disappear.

We should keep it open and look for ways to either sale or rent the space for a better gain than 2,000

5 0
3 years ago
Great Britain, Denmark, and Sweden have stayed out of the euro zone because of the Multiple Choice dollar peg advocated by some
solong [7]

Answer:

implied loss of national sovereignty to the European Central Bank

Explanation:

Unlike France, that has adopted the Euro as its currency, Great Britain, Denmark and Sweden have all decided to stay out of the Euro zone. This is because accepting the Euro as their currency will mean that the European Central Bank, through the Euro, has power over their economies as a result of exchange.

Also, staying away from the Euro zone means that the European central bank doesn't have control of  their monies among other things.

Cheers

6 0
3 years ago
When driving in the city, _____ may help you avoid traffic, but they may not be as safe or they may increase your travel time be
Darya [45]
The correct answer is side streets.
If you are in a hurry, it may be better to take a different route and drive through side streets in order to avoid the traffic which is usually present in the more 'popular streets.' However, side streets have a lot of traffic control lights, which may slow down your ride even more.
7 0
3 years ago
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The country of Lilliput has low unemployment and high consumer spending, and small businesses are thriving. However, prices are
lara31 [8.8K]

Answer:

Raise the income tax, which gives citizens less money to spend, and buy more services from civilian - owned businesses, which creates more jobs.

Explanation:

To prevent inflation, Lilliput's government should raise the income tax, which gives citizens less money to spend and buys more services from a civilian-owned business, which creates more jobs.

In this way, it can increase employment and reduce consumer spending which in turn will prevent inflation.

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3 years ago
Jason, your client, is developing a subdivision of 140 houses. He may place deed restrictions on as many as ______ properties.
kolbaska11 [484]

Jason, your client, is developing a subdivision of 140 houses. He may place deed restrictions on as many as 140 (100%) properties.

<h3>What is a deed restriction?</h3>

This is the term that is used to refer to the written agreements that are done in order to restrict and limit activities that may go on in a property.

These are private agreements that are made. It has to be 100 percent on the properties.

Read more on deed restrictions here:

brainly.com/question/4510408

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