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
Vadim26 [7]
3 years ago
6

Suppose an industrial building can be purchased for $2,500,000 today and is expected to yield cash flows of $180,000 each of the

next five years. (Note: assume cash flows are received at end of year.) If the building is expected to be sold at the end of the fifth year for $2,800,000, calculate the IRR for this investment over the five year holding period
Business
1 answer:
krek1111 [17]3 years ago
7 0

Answer: 9.20%

Explanation:

Use Excel to find out the IRR.

Ensure that you write the purchase price in negatives as shown in the attached picture.

The cashflow for the last year will be the sum of the selling price and the cash flow.

= 2,800,000 + 180,000

= $2,980,000

IRR = 9.20%

You might be interested in
On December 31, 2020, Berclair Inc. had 200 million shares of common stock and 3 million shares of 9%, $100 par value cumulative
Colt1911 [192]

Answer:

Earnings Per share = $0.83

Diluted Earnings per share = $0.71

Explanation:

Basic Earnings per share is how much each common stock share earns in profits and Diluted Earnings includes the options and bonds in its calculations for outstanding shares

formulas

Earnings Per share = (net income - Preferred stock dividends)/ outstanding number of shares

                              = $150/180

                              = $0.83

Diluted Earnings per share = (net income - Preferred stock dividends)/ outstanding number of shares

                                             = $150/210

                                             = $0.71

Outstanding number of shares  in millions

opening                                                       200

minus treasury stock                                 - 24

issued stock                                                 4

Basic outstanding shares                       = 180 shares

plus  share Options                                    30

Diluted shares                                           210

                 

8 0
3 years ago
Salvatore and Annette are sales managers for Acme USA. Both work full-time in the Acme offices under the same manager, and share
harina [27]

Answer:

<em>A</em>

Explanation:

Acme classified Annette as an independent contractor and as such, isn't entitled to certain benefits as compared to Salvatore that was hired as an employee. A contracting staff's timing and work benefits are always limited in comparison to that of an actual employee.

6 0
3 years ago
Read 2 more answers
Jean-Baptiste Say thought that entrepreneurs should be considered a fourth factor of production. Do you agree or not? Explain yo
Ivan

Answer: i do agree

Explanation: they are a factor because they help the economy in the same ways as the other factors of production

8 0
3 years ago
Techno is planning a security offering under regulation d, rule 505. under this rule, techno can
pogonyaev
Techno is planning a security offering under Regulation D, Rule 505. Under this rule, Techno can offer an unlimited amount of securities. Securities are able to spit up different payments for profits. Through these securities regarding the regulation rule, Techno can offer a wide range of securities. 
3 0
3 years ago
Explain why the basic economic problem will even affect Bill Gates (Founder and Chairman of Microsoft and one of the world’s wea
Grace [21]
<span>The basic economic problem will affect Bill Gates who is one of the the world's wealthiest people because scarcity of resources is more so related to goods and services, and not how much money one may have. While he may be able to buy all the goods and services he wants as many as he wants for a unlimited amount time, he could only have access to those things if they are available.</span>
8 0
3 years ago
Other questions:
  • As you read this scenario, think about the effects of reducing trade regulations.
    6·2 answers
  • You purchased 100 shares of common stock on margin at $45 per share. Assume the initial margin is 50% and the stock pays no divi
    13·1 answer
  • If you write a check on a bank to purchase a used Honda Civic, you are using money primarily as
    5·1 answer
  • The Percy family have purchased a heavily wooded property in Northern California. They are planning to build a guest house off t
    5·1 answer
  • A loan is a sum of money that is borrowed from a financial institution and then paid back in______
    6·2 answers
  • For the cash flow series below, calculate the external rate of return, using the return on invested capital approach with an inv
    15·1 answer
  • An attorney came to work on a Saturday. When he signed in, he was advised by the morning security guard employed by the building
    15·1 answer
  • Assume the account number for income summary is 901.2
    9·1 answer
  • What is the difference between charismatic leadership and transformational leadership?
    11·2 answers
  • You are in the process of preparing the final draft of an important proposal. Accuracy will be extremely important to the succes
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!