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bija089 [108]
3 years ago
12

RealTurf is considering purchasing an automatic sprinkler system for its sod farm by borrowing the entire $50,000 purchase price

. The loan would be repaid with four equal annual payments at an interest rate of 12%/year. It is anticipated that the sprinkler system would be used for 9 years and then sold for a salvage value of $5,000. Annual operating and maintenance expenses for the system over the 9-year life are estimated to be $10,500 per year. If the new system is purchased, cost savings of $20,500 per year will be realized over the present manual watering system. RealTurf uses a MARR of 15%/year for economic decision making.What is the internal rate of return used to reach your decision?
Business
1 answer:
Jet001 [13]3 years ago
8 0

Answer:

savings per year = $20,500 - $10,500 = $10,000

the loan and interest are not included in the calculation

initial outlay = $50,000

cash flows 1-8 = $10,000

cash flow 9 = $15,000

discount rate = 15%

using a financial calculator, the NPV = -$862.85, and the IRR = 14.53%

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Michael earns $3,950 every month after taxes and deductions for social security and insurance. He puts $900 a month into savings
krek1111 [17]

Answer:

Yes, Michael will afford the boat

Explanation:

So far Michael has saved $11,000.

The boats costs $30,000 to purchase.

Michael needs to raise $19,000  ($30,000 - $11,000) in two years to buy the boat.

Michael saves $900 per month. In 24 months he will have saved

=$900 x 24

=$21,600

Michael requires $19,000 but will have save $21,600 in two years. Therefore, he should be able to purchase the boat.

6 0
3 years ago
Questions<br>why do we need to understand the idea of culture, society and<br>politics?​
My name is Ann [436]

Answer:

Because the all works that we did done and thinks to doing need some rules. Every thing in this world pepole looks this is wrong. We have to understand our culture because we live in the frame. The frame is culture anyone cqnt change it. Political like a game. Every politicions working for luxury life. They never think about the denziens of their country. As i think this is rhw reasone to understand the political.Socity is very diffrent. Always it full of curropution. we have to carefull of our self always.

So this is my answer you can add some to your self..

4 0
3 years ago
Lifeworks is a nongovernment not-for-profit organization that recently received a large gift from a donor in the amount of $3,00
blagie [28]

Answer:

Explanation:

The net assets would increase. This is because the $100,000 earnings from investments are additional cash inflows hence an increase in current assets. For the $3,000,000 if invested, it will be considered an asset. It is a cash donation invested to generate earnings for the non-profit organization. Thus, these two instances add onto the net asset value of Lifeworks.

7 0
3 years ago
An example of a product that would be sold through niche marketing is
elixir [45]

a toothpaste with a whitening agent and cavity fighting protection

3 0
3 years ago
Arthur, an Air Force major, received a permanent change of station transfer from Alabama to Spain. His spouse did not accompany
daser333 [38]

Answer:

$0

Explanation:

Generally speaking, military housing allowances, subsistence allowances, overseas housing allowances and family separation allowances are not included in gross income. They are not taxed by the federal or state governments. Military personnel are not relocated based on the country's national security needs, not their own personal needs.

If the moving expenses exceed the amount given to them by the Air Force, the extra amount is generally tax deductible.

6 0
3 years ago
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