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
Evgen [1.6K]
3 years ago
7

You are considering opening a new plant.

Business
1 answer:
kotykmax [81]3 years ago
6 0

Answer:

1. $275 million

Yes

2. 30%

Explanation:

Calculation for the NPV of the investment opportunity

NPV = –100 + 30/0.08

NPV= $275 million

Therefore the NPV will be $275 million

Yes, Based on the above Calculation they should make the investment

2. Calculation for IRR

IRR: 0 = –100 + 30/IRR

Hence,

IRR = 30/100

IRR = 30%

Therefore the IRR will be 30%

The IRR is great only in a situation where the cost of capital does not go beyond 30%.

You might be interested in
Smiling Elephant, Inc., has an issue of preferred stock outstanding that pays a $5.60 dividend every year, in perpetuity. If thi
faltersainse [42]

Answer:

Required rate of return is 6.97%

Explanation:

The required rate of return can be ascertained from the price formula below when the subject of the formula is changed to rate of return instead of stock price:

Stock price =dividend/required rate of return

stock price is $80.40

required rate of return is unknown

the dividend on the preferred stock is $5.60

required rate of return=dividend/stock price

required rate of return =$5.60/$80.40=6.97%

The required rate of return based on the stock price and dividend information provided is 6.97%

4 0
4 years ago
Which method of allocated profits and losses is based on a percentage of initial investment by the partners?
Elanso [62]
Profit and loss ratio is the answer 
3 0
3 years ago
Given Table 12-6 below, fill in the values for saving. Assume taxes = $800.
Tanya [424]

Answer:

Saving =  National Income - Consumption - Taxes

Explanation:

Savings are the part of income that is not spent or paid in taxes. So it can be calculated by subtraction consumption from the national income.

National Income (Y) = C+ T + S

Therefore,

S= Y - C - T

That is the part of income that is not spent or paid in taxes is called savings.

National Income   Consumption  Taxes    Savings

$11,400                        $7,500           $800    $3,100

$11,800                        $7,800           $800    $3,200

$12,200                       $8,100            $800    $3,300

$12,600                       $8,400           $800    $3,400

5 0
3 years ago
To promote and build your brand, you absolutely must
NeTakaya

I could be wrong but I feel like A would be a good answer for this

4 0
3 years ago
Read 2 more answers
Dave, a graphic designer, has applied for a job at Animatrix Co., an animation studio. When he is called for the interview, Dave
Alex_Xolod [135]

Answer:

The correct option is: B. work sample

Explanation:

Work sample is a statistical technique by which the employer tests the ability of a candidate by assigning a sample work to be performed, in order to evaluate or analyze the work performance of the individual.

It can also be defined as the previous work or projects that are used to determine the efficiency or performance of the candidate.

<u>Therefore, in the given scenario, Dave’s graphic portfolio is an example of a </u><u>work sample.</u>

6 0
3 years ago
Other questions:
  • A new accountant at Leftwich Inc. is trying to identify which of the amounts shown below should be reported as the current asset
    6·1 answer
  • Which of the following choices concerning the recognition of interest income for corporate bondare CORRECT?
    6·1 answer
  • Murphy &amp; Johnson is a privately owned manufacturer of small motors for lawnmowers, tractors, and snowmobiles. The components
    7·1 answer
  • The service economy in the united states presented increased opportunities for _____. blue-collar workers entrepreneurs union me
    10·1 answer
  • An investment of $6,000 produces a net annual cash inflow of $2,000 for each of 5 years. What is the payback period? a.2 years b
    12·1 answer
  • Noah's family has been out of control with their spending lately. They have decided to come up with a spending plan to help them
    14·2 answers
  • What was the average annual risk premium on small-company stocks for the period 1926-2014?
    12·1 answer
  • If a country wants the economy to be able to produce increasing quantities of goods and services, what economic goal does the co
    5·1 answer
  • Hallie
    7·1 answer
  • due to a recession, lauren was laid off by her organization. to avoid having lauren and other laid-off workers stop spending mon
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!