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
lorasvet [3.4K]
3 years ago
10

Laws Corporation is considering the purchase of a machine costing $16,000. Estimated cash savings from using the new machine are

$4,120 per year. The machine will have no salvage value at the end of its useful life of six years and the required rate of return for Laws Corporation is 12%. The machine's internal rate of return is closest to: ________
Business
1 answer:
Stella [2.4K]3 years ago
5 0

Answer:

14%

Explanation:

Let IRR from machine be represented with i

Now, $4,120 * Cumulative PV factor (i, 6 periods) = $16,000

Cumulative PV factor (i, 6 periods) = $16,000 / $4,120

Cumulative PV factor (i, 6 periods) = 3.883

Now, we refer to PV factor table, the PV Factor (3.883) falls nearest to i =14%. (See proof in the attached table as attached below)

So therefore, IRR = 14%

So, the machine's internal rate of return is closest to 14%.

You might be interested in
What is outstanding credit card debt?​
joja [24]

Well, outstanding debt is debt you owe to a creditor or multiple creditors. Outstanding debt can be on a credit card, loan or student loan. ... If the amount you owe is close to your credit limit that is likely to have a negative effect on your score.

6 0
3 years ago
Fundamental analysis shows that stock in Cedar Valley Furniture Corporation has a price that exceeds its present value. Group of
barxatty [35]

Answer:

The correct option is :

This stock is overvalued; you shouldn't consider adding it to your portfolio.

Explanation:

The stocks that are in cedar valley corporation has a price that exceedes its present value from this statement the first given option doesn't justify as the stocks rates are not undervalued.

Now, in the second option its again given that the stock will be overvalued which is true but it should be added to the portfolio is not correct. so, this option is not considered.

In the third option it mentions that stock is overvalued which is the correct option and also that it shouldn't be added in portfolio.

And the last one states that its undervalued which restricts the option at this point only.

So, third option is correct.

5 0
3 years ago
On November 1, 20X1, Starbucks paid the rent of $90,000 for 40 of its stores in Colorado and Nebraska. The rent covers the perio
vazorg [7]

Answer:

Part (1) November 1

The amount paid is the rental advances and must be recorded as advances which falls under the current asset category:

Dr Rental Advances $90,000

Cr        Bank account             $90,000

Part (2) December 31

On this date, some of the rental advances paid would be realized as expenses from the period November 1, 20X1 to December 31, 20X2.

This time duration constitutes to 2 months and the rental advance made on November were for five months. Out of these 5 months, 2 months share must be recognized as expense which is

The relevant entry would be:

Dr Rental Expenses $36,000

Cr                Rental Advances $36,000

8 0
2 years ago
___ is a portfolio-planning tool for identifying company growth opportunities through market penetration, market development, pr
pentagon [3]

Answer:

Product market expansion grid

Explanation:

Product market expansion grid -  

It is used to plan for the company , when the company is indeed of expanding , is referred to as Product market expansion grid .  

The strategy or information required for the company to increase sale of the goods and services or introducing a new product in the upcoming market , uses this plan.  

Hence , from the given information of the question,

The correct term is  Product market expansion grid .

8 0
3 years ago
What is the term for the aesthetic that emerged with technological innovations and through mass media and entertainment, avoidin
Schach [20]

Group of answer choices.

a. Avant-Garde

b. Zeitgeist

c. Modern

d. Post-Modern

Answer:

c. Modern.

Explanation:

A product can be defined as any physical object or material that typically satisfy and meets the demands, needs or wants of customers. Some examples of a product are mobile phones, television, microphone, microwave oven, bread, pencil, freezer, beverages, soft drinks etc.

According to the economist Philip Kotler in his book titled "Marketing management" he stated that, there are five (5) levels of a product. This includes;

1. Core benefit.

2. Generic product.

3. Expected product.

4. Augmented product.

5. Potential product.

The core benefit of a product can be defined as the basic (fundamental) wants or needs that is being satisfied, met and taken care of when a customer purchase a product.

Innovation typically involves the creation of a new product of any category such as automobile, building, phones, electronics, etc., that generates money for the innovators or manufacturers through purchase made by the end users (consumers).

Modern is the term used to describe an aesthetic (artistic goods or products) that emerged with technological innovations and through mass media and entertainment, avoiding any reference to past fashion, instead focusing on sleekness, banishment of frills, functional details, and performance and technical fabrics.

This ultimately implies that, the product isn't obsolete in nature but designed and developed to meet new tastes.

4 0
2 years ago
Other questions:
  • On September 1, Home Store sells a mower (that costs $240) for $540 cash with a one-year warranty that covers parts. Warranty ex
    9·1 answer
  • Assume a firm in a competitive industry is producing 800 units of output, and it sells each unit for $6. Its average total cost
    11·1 answer
  • Papa Roach Exterminators, Inc., has sales of $659,000, costs of $345,000, depreciation expense of $45,000, interest expense of $
    14·1 answer
  • Amy has opened a new startup company in web design. Within the first month of business, the startup agrees to maintain an accoun
    12·1 answer
  • Depreciation expense is added back to net income when preparing the cash flow from operating activities section because deprecia
    5·1 answer
  • Which of the following statements are true? Period costs are expensed in the same period in which they are incurred. Period cost
    11·1 answer
  • A city assesses property owners $50 million to extend sewer lines to their neighborhood. By year-end, however, it has not begun
    12·1 answer
  • Looking forward to next year, if Digby’s current cash amount is $17,478 (000) and cash flows from operations next period are unc
    11·1 answer
  • In the current year, Marnie rented her vacation home for 75 days, used it for personal reasons for 22 days, and left it vacant f
    11·1 answer
  • 1. Why is it important to be able to write out a check properly ?
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!