Answer:
e) 14.19%
Explanation:
Let IRR be x%
. At IRR, Present value of inflows = Present value of outflows.
167,000 = 22000/1.0x + 22000/1.0x^2 + 22000/1.0x^3 + 22000/1.0x^4 + 22000/1.0x^5 + 30,000/1.0x^6 + 30,000/1.0x^7 + 30,000/1.0x^8 + 30,000/1.0x^9 + 30,000/1.0x^10 + 43000/1.0x^11 + 43000/1.0x^12 + 43000/1.0x^13 + 43000/1.0x^14 + 43000/1.0x^15
x = 0.1419
x = 14.19%
Hence, the internal rate of return for the project is 14.19%
Answer:
Margin of safety ratio= 0.12
Explanation:
Giving the following information:
Sales= 1,250 units
Break-even point in sales= $13,200
Selling price= $12
<u>First, we need to determine the current sales in dollars:</u>
Sales in dollars= 1,250*12= $15,000
<u>Now, the margin of safety ratio:</u>
Margin of safety ratio= (current sales level - break-even point)/current sales level
Margin of safety ratio= (15,000 - 13,200) / 15,000
Margin of safety ratio= 0.12
So, doing the calculations, Marion's had $700,000-240,000=$460,000-160,000 in expenses = $300,000 x 0.4 income tax=120,000 and so 300,000-120,000=$180,000 net value. Preston's had $700,000-40,000 depreciation=$660,000-160,000 expenses =$500,000 x 0.4 taxes= 200,000 taxes so 500,000-200,000=$300,000 net value. The result is Preston's had less depreciation which provided it with more spendable income.
A 4 percent decrease in the price will lead to an increase in the quantity demanded by less than 4 percent.
<h3>What is demand?</h3>
Demand simply means the amount of goods and services that a buyer wants to buy at a particular price and time.
When the demand for product x is inelastic, a 4 percent decrease in the price of x will lead to an increase in the quantity demanded by less than 4 percent.
Learn more about demand on:
brainly.com/question/1245771
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