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tensa zangetsu [6.8K]
3 years ago
15

An investment that costs $105,000 today is expected to produce the following cash inflows over each of the next five years: $20,

000; $25,000; $23,000; $22,000; $21,000. What is the IRR (compounded annually) for this investment
Business
1 answer:
bearhunter [10]3 years ago
6 0

Answer: 1.89%

Explanation:

You can use Excel to find the IRR here:

Investment amount should be first as shown and should be in negative.

The cash flows will then follow each other by year.

Use the =IRR formula to select all the cells and the IRR will show.'

IRR here = 1.89%

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Explanation:

A. The conceptual style decision makers willingly take risks, are innovative, and most times, are indecisive.

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Answer:

(D) marginal cost, the average variable cost, and the average total cost will shift up.

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Given the nature of business of AI's Donuts, flour prices is part of the variable cost of the business as it will change will any change in the output of the firm.

An increase in flour prices, a variable cost, will have the following effect on the following costs.

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Therefore, option (D) is correct as marginal cost, the average variable cost, and the average total cost will shift up.

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