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Svetach [21]
3 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]3 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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Manufactured truck parts are part of which industry
qwelly [4]

Answer:

c

Explanation:

4 0
2 years ago
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You are in talks to settle a potential lawsuit. The defendant has offered to make annual payments of $35,000, $39,000, $80,000,
storchak [24]

Answer:

The value of the settlement today =  $231,897.79  

Explanation:

The value of the settlement today is the sum of the present value (PV) of cash inflows discounted at the discount rate of 5.7 %.

Year                                                   PV

1              35,000 × 1.057^(-1)   = 33112.58

2                39,000× 1.057^(-2) = 34907.16

3.               80,000× 1.057^(-3)  = 67743.09

4                 120,000 × 1.057^(-4) =96134.94

The Pv of the total cash in flow =33,112.58  +  34,907.17  +  67,743.09  +  96,134.95  =  231,897.79  

The value of the settlement today =  $231,897.79  

7 0
3 years ago
Ashton's gross pay is 82,000. He receives tax credits of 2,000. He pays total taxes of 4,500. What are his taxable and disposabl
svp [43]
A taxable income is the total amount of money left after being deducted by other government payments. Meanwhile, a disposable income is the accounting of income taxes in an employee's payroll. Therefore, Ashton's taxable income is, $80,000 while his disposable income is $75,500.
8 0
3 years ago
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At the lowest price for jeans, consumers will demand the _____ jeans, and producers supply the _____ jeans.
katrin [286]
At the lowest price for jeans, consumers will demand the most jeans, and producers will supply the least jeans.
3 0
3 years ago
Read 2 more answers
Finney Company's condensed income statement is presented below: Revenues $988,000 Expenses Cost of goods sold $400,000 Operating
larisa [96]

Answer:

Explanation:

Operating Segment

Hotels Grains Candy Totals

Revenues (1) $378,000 $450,000 $72,000 $900,000

Expenses—

Cost of goods sold (1) 192,000 196,000 12,000 400,000

Operating and admin. expense (2) 58,000 91,000 27,000 176,000

Depreciation expense (3) 14,900 12,800 2,300 30,000

Total expenses 264,900 299,800 41,300 606,000

Operating profit $113,100 $150,200 $30,700 $ 294,000

(1) Total times segment percentage.

(2) Hotels = ($200,000 × 35%) - $12,000 = $58,000

Grains = ($200,000 × 50%) - $9,000 = $91,000

Candy = ($200,000 × 15%) - $3,000 = $27,000

(3) Hotels = ($40,000 × 46%) - $3,500 = $14,900

Grains = ($40,000 × 42%) - $4,000 = $12,800

Candy = ($40,000 × 12%) - $2,500 = $2,300

3 0
2 years ago
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