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
Ron wants to start a digital marketing firm. He presents his business plan to Reshmie, who agrees to provide some funds for the
Lady bird [3.3K]

Reshmie is called a <u>shareholder </u>of Ron Digital Marketing firm.

<h3>Who is a Shareholder?</h3>

A shareholder is an individual person, firm, or institution who holds at least one share of a company's equity.

Because shareholders effectively own the firm, they profit from its success. These benefits take the shape of improved stock values or financial earnings given as dividends.

When a firm loses money, the share price lowers automatically, causing shareholders to lose money or incur losses in their holdings.

Learn more about shareholders here:

brainly.com/question/25686394

5 0
2 years ago
The Bert Corp. and Ernie, Inc., have both announced IPOs. You place anorder for 1,100 shares of each IPO. One of the IPOs is und
Sati [7]

Answer:

The profit expected from the two IPOs is $2887.5

Explanation:

For the overpriced IPO,1100 shares would be received and since the share was overpriced by $6.25, an instant loss of $6,875 ($6.25*1100) is recorded.

For the under-priced IPO ,550 shares (1100 shares divided by 2) would be received and the immediate gain recorded is $9,762.5(550 *$17.75)

Overall the two portfolios, when taken together,give an immediate gain of $2,887.50(gain of $9,762.50 less loss of $6,875 )

This is power of portfolio diversification, that managing potential investment losses by spreading one's investment.

5 0
3 years ago
Suppose a firm that produces for this market is able to dump toxic chemicals into a river next to its factory, which poisons wil
DerKrebs [107]

Answer: an externality, market failure

Explanation:

Externality, simply refers to the gains and the costs that a third party gets due to the productivity or consumption activities of an individual or firm. In the above question, a negative externality occurs as the production of the firm has a negative effect on wildlife and the people living in the area.

In this case, the externality results in market failure which is due to the inefficiency with regards to the distribution of the goods in the free market.

7 0
3 years ago
Popular weight management organizations, such as Jenny Craig, Overeaters Anonymous, TOPS, and Weight Watchers all ______. Multip
Otrada [13]

Popular weight management organizations, such as Jenny Craig, Overeaters Anonymous, TOPS, and Weight Watchers all: A. include education and weekly support.

A good body composition can be defined as a physical state in which an individual has a well-balanced proportion of body fat and non-fat constituents (mass)

This ultimately implies that, the individual's body fat is in a lesser percentage while the non-fat mass such as organs, bones, muscle, etc., are in a higher percentage.

Generally, you can can develop a good body composition by performing the following:

  • Exercising regularly and properly.
  • Eating a well-balanced diet.
  • Regularly checking your body mass index (BMI).

Additionally, you should endeavor to read the education and weekly support provided by popular weight management organizations, such as Jenny Craig, Overeaters Anonymous, TOPS, and Weight Watchers.

Read more: brainly.com/question/25296988

8 0
2 years ago
The provisions of some laws and regulations have a direct effect on the financial statements in determining the reported amounts
balandron [24]

Answer:

Option D is correct.

Explanation:

A manufacturer’s compliance with the occupational and safety code is least likely to have a direct effect on the financial statements of the entity identified.

4 0
3 years ago
Other questions:
  • ​a(n) _____ operation does not start processing or assembling products until it receives a customer order.
    15·1 answer
  • Intask Corporation uses the FIFO method in its process costing system. Beginning inventory in the mixing department consisted of
    9·1 answer
  • In your research project on tourism, you must collect data before the tourist season ends because the project requires interview
    11·2 answers
  • An aging of Lily Company’s accounts receivable as of December 31 revealed the following. Amount % Uncollectible Current $20,000
    10·1 answer
  • The manager for a growing firm is considering the launch of a new product. If the product goes directly to market, there is a 40
    14·1 answer
  • A typing instructor builds a regression model to investigate what factors determine typing speed for students with two months of
    13·1 answer
  • 1.XYZ company had a total profit of $500,000. XYZ's expenses were $200,000. What is the net profit for XYZ company?
    11·1 answer
  • In the quantity discount model, the optimum quantity will always be found on the lowest total cost curve.
    5·1 answer
  • 1. What industry forces might cause a propitious niche to disappear?
    14·1 answer
  • A hiring authority is not utilizing contractors or temporary workers. What is the most likely explanation?
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!