Answer:
The answer is 30%
Explanation:
Solution
Given that:
Project A
Project A costs = $350
Cash flows =$250 and $250 (next 2 years)
Project B
Project B costs =$300
Cash flow = $300 and $100
Now what is the crossover rate for these projects.
Thus
Year Project A Project B A-B B-A
0 -350 -300 -50 50
1 250 300 -50 50
2 250 100 150 -150
IRR 27% 26% 30% 30%
So,
CF = CF1/(1+r)^1 + CF2/(1+r)^2
$-50 = $-50/(1+r)^1 + $150/(1+r)^2
r = 30%
CF = CF1/(1+r)^1 + CF2/(1+r)^2
$50 = $50/(1+r)^1 + $-150/(1+r)^2
r = 30%
Hence, the cross over rate for these project is 30%
Note:
IRR =Internal rate of return
CF =Cash flow
r = rate
True rather be safe then sorry
Answer:
$1,194
Explanation:
The buying price of the shares was $12,780
The selling price was $7 dollars for each.
The total amount realized is 2000 share x $ 7
=$14,000
The commission paid is $26
Net amount obtained is $14,000 -$26
=$13,974
Profit will be $13,974 -$12,780
=$1,194
Answer:
productivity is calculated by using formula
Explanation:
formula = total output/ total input
Answer:
$510,000.00
Explanation:
Since the historical cost principle states that business must account and record most assets at their purchase or acquisition price which means the data put into record on the balance sheet would reflect amount paid for asset.
That is why it is $510000.
