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Kiley Electronics is considering a project that has the following cash flow data. What is the project's IRR? Note that a project

lisov135 [29]

Answer:

d. 13.31%

Explanation:

IRR is the rate at which NPV = 0

IRR 13.31%

Year 0 1 2 3

Cash flow stream -1100.000 450.000 470.000 490.000

Discounting factor 1.000 1.133 1.284 1.455

Discounted cash flows project -1100.000 397.136 366.060 336.804

NPV = Sum of discounted cash flows

NPV Project = 0.000

Where

Discounting factor = (1 + discount rate)^(Corresponding period in years)

Discounted Cashflow = Cash flow stream/discounting factor

IRR = 13.31%

Therefore, The project's IRR is 13.31%

5 0

3 years ago

Parker Corp. owns 80% of Smith Inc.'s common stock. During Year 1, Parker sold Smith $250,000 of inventory on the same terms as

IrinaVladis [17]

Answer:

c. $500,000

Explanation:

Given that :

Parker Corp. owns 80% of Smith Inc.'s common stock

During Year 1, Parker sold Smith $250,000 of inventory

Therefore; adjusted for inter Corp. sales = $250,000

The following information pertains to Smith and Parker's sales for Year 1:

Parker Smith

Sales $ 1,000,000 $ 700,000

Cost of Sales $400,000 $ 350,000

Total $ 600,000 $ 350,000

For the Unadjusted Cost of Sales of Parker and Smith = $400,000+$ 350,000

= $750,000

The amount that Parker should report as cost of sales in its Year 1 consolidated income statement = Unadjusted Cost of Sales - adjusted for inter Corp. sales

= $750,000 - $250,000

= $500,000

7 0

3 years ago

In the simple Keynesian model, Multiple Choice Inflation becomes a problem only if demand increases at full employment. Inflatio

ElenaW [278]

Answer:

In the simple Keynesian model, inflation becomes a problem only if demand increases at full employment.

Explanation:

In the Keynesian view, price inflation is mainly the result of relative changes in supply and demand, which lead to price changes. Changes in the money supply have no direct influence here. According to this school, the money supply is the result of money creation by the banking system; but this plays only a limited role in the process.

In this vision, a distinction is made between:

- Demand inflation: Inflation occurs when the aggregated demand for goods and services increases, with an initially constant supply.

-Cost inflation: Inflation occurs if there is a sudden decrease in supply when demand remains the same.

7 0

3 years ago

Knowing the educational requirements for a job you are interested in is very important. For example, to become a doctor would re

Ray Of Light [21]

Answer: It is very important because you need to be prepared to invest the time and money necessary to gain the required skills.

Explanation:

7 0

2 years ago

Blur Corp. has an expected net operating profit after taxes, EBIT(1 – T), of $7,600 million in the coming year. In addition, the

Zina [86]

Answer:

Free cash flow (FCF) for next year = $ 6,450 million

Explanation:

<em>Free cash flow represents the amount that is left to all the providers of capital after the payment of all all operating expenses, working capital and investment in fixed asset expenditures.</em>

<em>It is computed as cash flow made from operation less capital expenditures</em>

For Blur Communications

The Free cash flow

= EBIT (1-T) - increase in capital expenditure - increase in working capital

= 7600 - $1,140 - 10

= $ 6,450 million

Free cash flow (FCF) for next year = $ 6,450 million

6 0

3 years ago

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