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3 years ago

In order for a higher-cost alternative to be attractive, the incremental rate of return must be__________________.

Business

1 answer:

pantera1 [17]3 years ago

6 0

In order for a higher-cost alternative to be attractive, the incremental rate of return must be greater than MARR.

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Relevant Cash Flows Kenny, Inc., is looking at setting up a new manufacturing plant in South Park. The company bought some land

Marta_Voda [28]

Answer: $38,410,000

Explanation:

When recording investments in fixed assets, it is best to use the market value at the time.

The market value of the land will therefore be the relevant cost here.

Initial investment in fixed assets = Market value of land + Cost to build plant + Cost of grading

= 7,700,000 + 29,300,000 + 1,410,000

= $38,410,000

8 0

3 years ago

If you are paid $15 per $100 sold, what is your type of payment?

ankoles [38]

I’m pretty sure the answer is a. commission

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3 years ago

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9 . Implied interest rate and period Consider the case of the following annuities, and the need to compute either their expected

vodomira [7]

Answer:

IRR 6% for Jabob

His friend will need 12 years saving cash to obtain their collegue funds.

Explanation:

We will solve for the rate being the annuity of 3 payment of 800

and the present value 2,138.41

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 800

time 3

PV 2,138.41

rate ?

$800 \times \frac{1-(1+x)^{-3} }{x} = 2,138.41\\$

To solve we can use excel, a financial calculator or trial and error

For excel we will do the following:

write the list of cash through the loan life:

-2,138.41

+800

then we write in the empy cell

=IRR(

select the values and press enter

This will give the IRR which is 6%

For the second assignment:

we need to solve for time:

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 3,800

time n

rate 0.06

PV $31,897

$3800 \times \frac{1-(1+0.06)^{-n} }{0.06} = 31,897\\$

We work out the formula:

$(1+0.06)^{-n} = \frac{31,897\times 0.06}{3,800}$

Now we solve the right side and apply logarithmic properties

$-n = \frac{log0.503636842
}{log1.06}$

-n = -11.77128325

n = 11.77

It will take 12 years to obtain their target amount

3 0

4 years ago

When the CPI increases from 200 in 2016 to 210 in 2017 and the nominal wage rate is constant at $10 an hour, the real wage rat

Alex Ar [27]

Answer:

Option (B) decreases by 5 percent

Explanation:

When the nominal wage rate is $10 and the CPI is 200

The real wage rate

= [Nominal wage rate ÷ CPI in 2017 ] × 100

= [ $10 ÷ 210 ] × 100

= $4.76

Now,

The change in the real wage rate between 2016 and 2017

= [ ( 4.76 - $5.00 ) ÷ $5.00 ] × 100

= - 0.048 ≈ -0.05 or - 5 percent

here, negative sign means decrease

Hence,

Option (B) decreases by 5 percent

3 0

3 years ago

What refers to the study of your strengths and weaknesses and the identification of your area of interest

Murljashka [212]

Answer:

Mind Phillosification

Explanation:

it studies your brain which you can see by their thoughts how to see their weaknesses and strong points ;)

4 0

3 years ago

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