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Svetach [21]
2 years ago
9

Lennon, Inc. is considering a five-year project that has an initial outlay or cost of $80,000. The respective future cash inflow

s from its project for years 1, 2, 3, 4 and 5 are: $15,000, $25,000, $35,000, $45,000, and $55,000. Lennon uses the internal rate of return method to evaluate projects. What is Lennon's IRR
Business
1 answer:
SIZIF [17.4K]2 years ago
4 0

Answer:

26.16%

Explanation:

Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested

IRR can be determined using a financial calculator

CO = -80,000

C1 = $15,000

C2 = $25,000

C3 = $35,000,

C4 = $45,000

C 5 = 55,000

IRR = 26.16

To determine IRR using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.  

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he following labor standards have been established for a particular product: Standard labor-hours per unit of output 9.0 hours S
Arisa [49]

Answer:

Direct labor rate variance= $2,430 favorable.

Explanation:

Giving the following information:

Standard labor rate $ 15.10 per hour

Actual hours worked 8,100 hours

Actual total labor cost $ 119,880

To calculate the direct labor rate variance, we need to use the following formula:

Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity

Actual rate= 119,880/8,100= $14.8

Direct labor rate variance= (15.1 - 14.8)*8,100= $2,430 favorable.

<u>It is favorable because the actual rate for direct labor was lower than the estimated rate.</u>

4 0
3 years ago
Marple Company's budgeted production in units and budgeted raw materials purchases over the next three months are given below:
Vlada [557]

Answer: 75,000 units

Explanation:

Come up with an expression to solve this.

Assume the budgeted production needed is P.

P needs 2 pounds of raw materials per unit so raw materials needed are 2P.

Beginning raw materials for February have to be 30% of the needs of February;

= 30% * 2P

= 0.6P

Ending raw materials for February have to be 30% of March needs so;

= 30% * 100,000 * 2 pounds

= ‭60,000‬ pounds

So;

Budgeted raw materials purchase for February = Raw materials needed + Ending raw materials - Beginning raw materials

165,000 = 2P + 60,000 - 0.6P

1.4P = 165,000 - 60,000

P =  (165,000 - 60,000) / 1.4

= 75,000 units

5 0
2 years ago
Megan’s balance sheet shows that on February 7, 2010 she had assets totaling $27,600 and debts totaling $32,500. Which of the fo
balandron [24]

Answer:

Option (C) is correct.

Explanation:

Given that,

Megan’s balance sheet shows:

Total assets = $27,600

Total debts = $32,500

Net worth is the difference between total assets and total liability.

Net worth = Total assets - Total debts

                 = $27,600 - $32,500

                 = -$4,900

Therefore,

Megan’s balance sheet shows the negative worth of $4,900.

4 0
3 years ago
Which of the following is good for our economy?
Otrada [13]

Answer:

Stable prices

Explanation:

Stable prices created a structured economy without residents having to constantly adapt to deflation, inflation etc.

8 0
2 years ago
Why do you think constantinople's location influence its growth and financial success?
miv72 [106K]
Constantinople was located in the middle of the Mediterranean seas.
This location is definitely really strategic for Constantinople international trading because its connected the continents of Europe, Asia, and America. This makes Constantinople able to develop trading relationships with a lot of countries, which influence its growth and financial stability.
4 0
2 years ago
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