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
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%

You might be interested in
Fern invested $6400 into a continuously compounded account with an interest rate of 1.5%. After 10 years, how much is the accoun
777dan777 [17]

Answer:

FV= $7,435.74

Explanation:

Giving the following information:

Initial investment= $6,400

Interest rate= 1.5%

Number of periods= 10 years

<u>To calculate the value of the account in ten years, we need to use the following formula:</u>

FV= PV*e^(i*n)

FV= 6,400*e^(0.015*10)

FV= $7,435.74

6 0
3 years ago
Sales for the last four months of the year for a company are listed below. What is the average of the sales for these four month
vovikov84 [41]
December i think, pretty sure i guess
6 0
3 years ago
Read 2 more answers
Harley-Davidson motorcycle owners, who pay a price premium for their motorbikes, have formed the Harley Owners Group (HOGs), who
Elan Coil [88]

Answer:

A) Functional and social value

Explanation:

Seeing the benefit that customers attribute to products is a marketing strategy to optimize sales and establish a brand that customers identify with. In this case, motorcyclists experience functional benefit and social benefit.

The functional benefit concerns the essential characteristics of the product, such as physical characteristics that please the consumer (eg the motorcycle scooter design). The social benefit is associated with the pleasure that the customer gets when purchasing the product. This is an individual benefit for each consumer, however, is an extrinsic advantage attributed to the product. For example, the status that the motorcycle brings to its owner.

5 0
3 years ago
Jim wants to buy a car, but he’ll probably only need it for a couple of years. He has a short commute to work, so he won’t be pu
jolli1 [7]
I would say bike or bus.
5 0
3 years ago
When an automobile manufacturer is careful to purchase only the highest-quality components for use in production, this is an exa
Kryger [21]

Answer:

The option for this question are the following:

A. Concurrent

B. Statistical

C. Inventory

D. Feedforward

The correctt answer is D. Feed forward.

Explanation:

Feedforward is the process by which feedback between company members focuses more on future possibilities. That is to say, it is not only about communicating but about doing it thinking about increasing the opportunities that the company has and will be able to have later.

The problem we had when we talked about feedback was that it focused on aspects of the past. Communication was thought of as something of the moment, without determining an intention to take it to another level. The ‘feed’ forward would come into play here.

What is intended with the feedforward is to establish links and ideas, so that teamwork makes business organization easier. Brainstorming and the sharing of solutions and aspects for the company mean that employees can aspire to a positive work future.

8 0
3 years ago
Read 2 more answers
Other questions:
  • Oriole Company purchased a building on January 2 by signing a long-term $482000 mortgage with monthly payments of $5300. The mor
    5·1 answer
  • Discuss the effectiveness of Red Bull sponsorships, advertisements, personal selling strategies, promotion, events, and public r
    7·1 answer
  • Bountiful company had sales of $650,000 and cost of goods sold of $200,000 during a year. the total assets balance at the beginn
    7·1 answer
  • Live Easy, Inc., specializes in dietary supplements that address the specific needs of women over the age of sixty, such as bone
    6·1 answer
  • Advertising revenue, the lifeblood of newspaper operations, ______.
    6·1 answer
  • The Plainfield Company has a long-term debt ratio (i.e., the ratio of long-term debt to long-term debt plus equity) of .52 and a
    11·1 answer
  • Sean recently bought an expensive tablet from Sigma Inc. He is very happy and satisfied with the tablet's performance and has ev
    7·1 answer
  • What does liquidity refer to?
    13·1 answer
  • Thế nào là toàn cầu hóa thị trường, toàn cầu hóa sản xuất?
    10·2 answers
  • adelia bought 100 units at $15 each. The Company then sold 30 units at $25 each, and 50 percent was paid in cash. What amount wi
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!