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
Nataliya [291]
3 years ago
5

Final Finishing is considering three mutually exclusive alternatives for a new polisher. Each alternative has an expected life o

f 10 years and no salvage value. Polisher 1 requires an initial investment of $20,000 and provides annual benefits of $4,465. Polisher 2 requires an initial investment of $10,000 and provides annual benefits of $1,770. Polisher 3 requires an initial investment of $15,000 and provides annual benefits of $3,580. MARR is 15%/year.
Show the comparisons and internal rates of return used to make your decision:

Based on an internal rate of return analysis, which polisher should be recommended?
Business
1 answer:
valkas [14]3 years ago
8 0

Answer:

1. 18.09%

2. 12%

3. 20.02%  

Explanation:

As the MARR is 15%, we will accept projects which have IRR more than 15%. As the projects are mutually exclusive, we will choose only one project.

An IRR (Internal Rate of Return) is the rate which makes the NPV (Net Present Value) = ZERO.

The formula to calculate IRR is: 0 = P0 + P1/(1+IRR) + P2/(1+IRR)2 + P3/(1+IRR)3 + . . . +Pn/(1+IRR)n where P0 = Initial cash outflow

And P1, . . . Pn equals the cash inflows in periods 1, 2, . . . n, respectively.      

1) IRR of project 1:

0 = -$20,000 + $4,465/(1+IRR)1 + $4,465/(1+IRR)2 + $4,465/(1+IRR)3 + . . . + $4,465/(1+IRR)10

Solving for IRR we have = 18.09%

2) IRR of project 2:

0 = -$10,000 + $1,770/(1+IRR)1 + $1,770/(1+IRR)2 + $1,770/(1+IRR)3 + . . . + $1,770/(1+IRR)10

Solving for IRR we have = 12%

3) IRR of project 3:

0 = -$15,000 + $3,580/(1+IRR)1 + $3,580/(1+IRR)2 + $3,580/(1+IRR)3 + . . . + $3,580/(1+IRR)10

Solving for IRR we have = 20.02%

We will choose project 3 as it has the highest IRR.

You might be interested in
ACNielsen conducts weekly surveys of television viewing throughout the United States. The ACNielsen statistical ratings indicate
chubhunter [2.5K]

Answer: The answers are given below

Explanation:

A. What is the ACNielsen organization attempting to measure?

ACNielsen organization attempting to measure the Television Rating Point of the major television network. The TRP helps us to know the programmes that the viewers watch the most.

B. What is the population?

The population will have to be the viewers who watch the programmes and the television networks in the United States.

C. Why would a sample be used for this situation?

Sampling is when few people are selected from a larger population in order to carry out an experiment. In this situation, sampling is required because gathering data from the larger population will be time consuming and costly.

D. What kinds of decisions or actions are based on the ACNielsen studies?

A new strategy can be devised by the television networks of they know the number of people or the particular age group who normally watches the programmes, then they can tune their strategy towards that direction.

4 0
2 years ago
Two or more organizations that join forces in order to achieve advantages that neither can perform as well alone are known as __
SpyIntel [72]

Answer:

correct answer is Strategic allies

Explanation:

Strategic allies is a arrangement between 2 or more than 2 organization for undertaking mutual beneficial projects even both retain their independence.

as they have less complex than a joint venture  

and for improving their product and development competitor in the market , they can enter into a strategic alliance

so as that both organizations can work on common coal with benefit

so correct answer is Strategic allies  

5 0
3 years ago
PLEASE HELP!!!!! Nicholas starts a taxi cab business. He buys a garage, hires three drivers, buys two taxi-cabs, he sends his ca
Nostrana [21]
A. The purchased taxi cabs.
The gov. Uses it as capital investment since it is a mode of public transportation. The answer could also be c so people can drive it (with proper training) so other people can use it.
3 0
3 years ago
Park & Company was recently formed with a $6,200 investment in the company by stockholders in exchange for common stock. The
KengaRu [80]

Answer:

a) $14,600.

Explanation:

The computation of the company total assets are shown below:

= Cash balance + supplies balance + equipment balance

where,

Cash balance =  investment amount + borrowed amount - paid amount for equipment

= $6,200 + $3,200 - $2,120

= $7,280

And, the other item values would remain the same

Now put these values to the above formula  

So, the value would equal to

= $7,280 + $1,120 + $6,200

= $14,600

4 0
3 years ago
In a 1960s movie, an heiress sends out thousands of letters to shareholders in an attempt to have them vote for her and for the
Vitek1552 [10]

Answer:

The kind of corporate takeover technique implemented in the film is proxy fight.

Explanation:

A proxy fight is termed as a technique where two corporate factions ask the stakeholders for the proxy votes such that the right of voting is transferred.

In this case both the parties, the heiress as well as the opponent is asking for the right of vote from  stakeholders so that they can decide the corporate future. This is the key feature of the proxy fight and thus this is the correct option.

6 0
3 years ago
Other questions:
  • Research has shown that the association between job satisfaction and job performance is ________.
    8·1 answer
  • A large bank is promoting its credit card to existing bank customers who have had more than one account with the bank over the p
    6·2 answers
  • On an aggregate demand and aggregate supply graph, the stagflation of the 1970s can be represented as a
    7·1 answer
  • Q2. Clare works at the front desk of DESB. Between 10:30am and 11:00am, 10 students stop by to ask questions on average. It usua
    8·1 answer
  • How would a reduction in the temperature from 80 degrees to 50 degrees affect one’s decision to go swimming?
    13·1 answer
  • The following selected account balances are provided for Delray Mfg. Sales $ 1,165,000 Raw materials inventory, beginning 35,000
    8·1 answer
  • 12’) The Stone Harbor Fund is a closed-end investment company with a portfolio currently worth $200 million. It has liabilities
    9·1 answer
  • The 3 levels that brand positioning can be achieved​
    10·1 answer
  • Ill GIVE BRAINLIEST
    6·1 answer
  • westin wants to borrow $1,000 from missy to help pay his deposit at his new apartment. missy says she will agree to the loan him
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!