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
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%

You might be interested in
During a management meeting, Lester, the CEO of Elite Office Equipment, reminded his management team of where the company wants
REY [17]

Answer: Vision statement

Explanation:

Vision statement is referred to as or known as an organization's road map, which tends to indicate what the organization believes to become and achieve by putting forth a well defined direction and route for the organization's growth. These statements usually undergo the minimal revisions throughout the lifetime of an organization, unlike the operational goals that might be revised on yearly basis.

7 0
3 years ago
One reason to buy a home instead of rent a home is:
Effectus [21]
Less money up front equals it to be better than renting an appartment
3 0
3 years ago
Read 2 more answers
Telemarketers please help me with this question:
vazorg [7]

Answer:

your being reported

Explanation:

7 0
2 years ago
Where are endnotes positioned in a document?
m_a_m_a [10]
Endnotes are usually positioned AT THE END OF A DOCUMENT. The purpose of endnote is to reference the citations you used in your document. Endnotes supplement the information you have given in the body of the document but which would be inappropriate if they are included in the main text.
5 0
3 years ago
John’s home is up for sale. He originally bought it five years ago for $300,000. Its current value is $350,000. His real estate
Mumz [18]

Answer:

Market value

Explanation:

The market value of a product is the price at which a buyer is willing to purchase a good irrespective of prevalent price of a commodity. It is that amount a buyer and seller are willing to strike a deal for given normal market conditions.

In this scenario John originally bought his five years ago for $300,000. Its current value is $350,000. His real estate agent notified him that a buyer just made an offer on his home for $365,000.

Despite the house now being $350,000, $365,000 is the market price at which the buyer and seller are willing to settle.

8 0
3 years ago
Other questions:
  • In an organization with a(n)__________, the parent company and all the subsidiaries work together in designing policies, procedu
    5·1 answer
  • ______ argued that the major activities of management and leadership are played out differently; but both are essential to an or
    14·1 answer
  • If the inverse demand function is:
    7·1 answer
  • The placing of direct materials into the production process is recorded by an entry debiting:_________.A. Materials Expense.
    5·1 answer
  • The Keynesian link between the money market and the goods and services market is __________. Changes in the money market must af
    11·1 answer
  • The variable overhead spending variance, the fixed overhead spending variance, and the variable overhead efficiency variance can
    11·1 answer
  • The term ___________________ describes the proportion of deposits that the bankmust hold in the form of reserves that are not lo
    12·1 answer
  • Problem 2 (9 points) The following information was taken from the income statement and balance sheet of The Perryman Company for
    8·1 answer
  • Three categories of activities (operating, investing, and financing) generate or use the cash flow in a company. In the followin
    7·1 answer
  • In what way does the IDP promote an integrated approach to the planning of municipal service delivery for development
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!