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Fittoniya [83]
3 years ago
15

A proposed project will require an initial investment of $1,000,000 and will generate net operating cash inflows of $250,000 per

year for five years. What is the internal rate of return?
a. 11%
b. 13%
c. Less than 9%
d. Over 15%
Business
1 answer:
sdas [7]3 years ago
3 0

Answer:

c. Less than 9%

Explanation:

Step 1

Determine the Cash Flow Summary of the Project.

Year 0 = - $1,000,000

Year 1  = $250,000

Year 2  = $250,000

Year 3  = $250,000

Year 4  = $250,000

Year 5  = $250,000

Step 2

Calculate the Internal Rate of Return (IRR)

Using a Financial Calculator the Following parameters would be set :

- $1,000,000 CFj

$250,000 CFj

$250,000 CFj

$250,000 CFj

$250,000 CFj

$250,000 CFj

Shift  IRR/YR 7.9308 or 7.93%

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Southeastern Bell stocks a certain switch connectorat its central warehouse for supplying field service offices. Theyearly deman
Tomtit [17]

Answer:

a. 300 units

b. $3,750

c. $3,750

d. 100 units

Explanation:

a.  The computation of the economic order quantity is shown below:

= \sqrt{\frac{2\times \text{Annual demand}\times \text{Ordering cost}}{\text{Carrying cost}}}

= \sqrt{\frac{2\times \text{15,000}\times \text{\$75}}{\text{\$25}}}

= 300 units

b. For annual holding cost, first we have to find out the average inventory would equal to

= Economic order quantity ÷ 2

= 300 units ÷ 2

= 150 units

Now the Carrying cost = average inventory × carrying cost per unit

= 150 units × $25

= $3,750

c.  For ordering cost, first we have to compute number of orders would be equal to

= Annual demand ÷ economic order quantity

= $15,000 ÷ 300 units

= 50 orders

Now Ordering cost = Number of orders × ordering cost per order

= 50 orders × $75

= $3,750

d. The computation of the reorder point is shown below:

= (Annual demand ÷ total number of days in a year ) × lead time

= (15,000 units ÷ 300 days) × 2 working days

= 100 units

6 0
3 years ago
Masters Corp. issues two bonds with 20-year maturities. Both bonds are callable at $1,050. The first bond is issued at a deep di
I am Lyosha [343]

Answer:

Explanation:

a)

The YTM of the bond at par value is equals to its coupon rate, 8.75%. Other things being equal, this 4% coupon rate bond will be more eye-catching as the coupon rate is lower than the current market yields, and its price is far below the call price. So, if yields drop, capital gains on the bond will not be restricted by the call price.

b)

If an investor foresees that yields will fall considerably, the 4% bond proposes a better expected return.

c)

Implicit call protection is offered in the sense that any likely fall in yields would not be nearly enough to make the firm consider calling the bond. In this sense, the call feature is almost irrelevant

3 0
3 years ago
Sequential product development has the advantage of not only being a team-oriented approach, but also of being faster in bringin
wariber [46]

Answer:

False

Explanation:

During a sequential product development, each department works to complete its stage before the process continues to the next department.

A team-based new product development approach is used to develop products faster and to be able to sell them faster. This approach does not require that each department finishes its stage before passing to the next one. Instead, several departments work together simultaneously.

6 0
3 years ago
According to the national communication association, which skill is considered the most valuable by employers?.
STALIN [3.7K]

Explanation:

Listening. Being a good listener is one of the best ways to be a good communicator. ...

Nonverbal Communication. ...

Clarity and Concision. ...

Friendliness. ...

Confidence.

Empathy. ...

Open-Mindedness. ...

Respect

5 0
3 years ago
Which of the following statements is/are true? Check all that apply. Check all that apply.
kipiarov [429]

Answer:

The following statements are true:

c. A potential energy function can be specified for a conservative force.

e.A conservative force permits a two-way conversion between kinetic and potential energies.

f. The work done by a non-conservative force depends on the path taken.

Explanation:

  • The statement a is incorrect as the work done by a conservative force does not depend upon the the path taken instead work done by a non- conservative force depend upon the path taken.
  • The statement b is incorrect as the potential energy function can not be specified for a non-conservative force but it is specified for a conservative force.
  • The statement d is also incorrect as the non-conservative force doesn't permits a two way conversion between Kinetic and Potential energies but the conservative force permits this conversion.
8 0
3 years ago
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