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
frosja888 [35]
3 years ago
13

Management of Carla Vista Home Furnishings is considering acquiring a new machine that can create customized window treatments.

The equipment will cost $199,550 and will generate cash flows of $104,750 over each of the next six years. If the cost of capital is 13 percent, what is the MIRR on this project
Business
1 answer:
Nutka1998 [239]3 years ago
5 0

Answer:

MIRR = 27.85%

Explanation:

Below is the calculations:

The cost of equipment, Present value = $199550

Generate cash flow each year = $104750

Time = 6 years

Now find the future value of annual cash flow = 104750 (F/A , 13%, 6)

The future value of annual cash flow =104750 x 8.3227

The future value of annual cash flow = $871802.825

Now find the MIRR = (871802.825 / 199550)^(1/6)-1

MIRR = (4.3688)^(1/6)-1

MIRR = 27.85%

You might be interested in
After a prolonged period of high inflation the government of Atlantia decides to set a target of 0% inflation going forward. As
s2008m [1.1K]

The best support against a 0% inflation target given by the economic literature is c. A 0% inflation target could lead to deflation.

<h3>Why is a 0% inflation target risky?</h3>

If 0% inflation is targeted, the policy might be so effective that inflation becomes negative and deflation happens.

When deflation happens, the economy will experience hardships with lower production levels that will impact other sectors of the economy.

Options for this question include:

a. It is undisputed that too little inflation interferes with the downward adjustment of real wages.

b. Moderate to high inflation is popular among consumers.

c. A 0% inflation target could lead to deflation

Find out more on deflation at brainly.com/question/13562161.

#SPJ12

6 0
1 year ago
There are two nations that, using all of their resources, both produce lemon drops and boxes. Nation A can produce either 300 le
In-s [12.5K]

Answer:

I drew the production possibilities frontier curve for both nations, A and B, and attached it.

Explanation:

7 0
3 years ago
Which action will help increase a low FICO score?
Andreas93 [3]
Reducing credit card balances is the <span>action will help increase a low FICO score. 

</span>The FICO mortgage score is between 300<span> and </span>850<span>. Higher scores indicate lower credit risk. Each individual actually has 65 credit scores for the FICO scoring model because each of </span>three<span> national credit bureaus, Equifax, Experian and TransUnion, has its own database.</span>
8 0
2 years ago
A contract with a mistake that results from failure to understand the contract’s meaning or significance or from failure to read
Olegator [25]
A.............................
4 0
2 years ago
When a firm manufactures a product and is uncertain about whether customers will want to buy its products, that firm is experien
Lady_Fox [76]

Answer: Risk taking

Explanation:

 The risk taking function is one of the most important function in the marketing as it manage all the losses and also the failure potential in the marketing.

The risk taking function includes the product development, experience of the user or consumers, distribution and the promotion in the market.

 According to the given question, a manufacturer organization is uncertain about the product that whether the consumers want the product or not so that is why the organization is experiencing the risk taking function in the market.

The following are some types of risk in terms of marketing that are:

  • Product risk
  • Operation risk
  • Price risk  
  • Sales risk

3 0
3 years ago
Other questions:
  • Six-month call options with strike prices of $35 and $40 cost $6 and $4, respectively. You plan to create a bull spread call (Bu
    10·1 answer
  • Nabisco used a free-standing rack in the shape of a bus to promote its Ritz and other cracker products. The goal of the sales pr
    10·1 answer
  • Degregorio Corporation makes a product that uses a material with the following direct material standards:
    13·1 answer
  • Your parents have accumulated a $120,000 nest egg. They have been planning to use this money to pay college costs to be incurred
    14·1 answer
  • Using the information below, calculate the cost of goods manufactured for the period: Beginning Raw Materials Inventory $ 25,000
    7·1 answer
  • Hope is desperate for the new designer purse that she saw while window shopping at her local mall. She knew every girl in school
    15·1 answer
  • Suppose Mattel, the producer of Barbie dolls and accessories (sold separately), has two types of consumers who purchase its doll
    11·1 answer
  • Maricela writes slowly. When preparing a first draft, she spends a good deal of time formatting and choosing the correct font. M
    10·1 answer
  • You will die when you poop in the bed
    9·2 answers
  • Describe the ways in that general and functional managers are different from end users. what purpose do these managers have in r
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!