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Anna35 [415]
3 years ago
9

Maxwell Feed & Seed is considering a project that has the following cash flow data. What is the project's IRR? Note that a p

roject's projected IRR can be less than the WACC (and even negative), in which case it will be rejected. Year 0 1 2 3 4 5 Cash flows -$6,750 $2,000 $2,025 $2,050 $2,075 $2,100 a. 15.45% b. 13.74% c. 15.61% d. 17.17% e. 12.96%
Business
1 answer:
jolli1 [7]3 years ago
7 0

Answer:

The correct option is c. 15.61%.

Explanation:

Note: See the attached excel file for the calculation of the IRR of this project.

Internal Rate of Return (IRR) can be described as a discount rate that makes the net present value (NPV) of a project to be equal to zero.

An IRR can be calculated using an excel function IRR. After inputting the data of the project to an excel sheet in the attached excel file, the IRR is calculated by simply typing the =IRR(B4:B9) in any cell of the sheet.

From the attached excel file, the IRR is obtained as 15.61%

Therefore, the correct option is c. 15.61%.

Download xlsx
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Your reference price will become more accurate and reflect real prices whena.) you have consulted your friends, family and colle
11Alexandr11 [23.1K]

Answer:

The correct answer is letter "D": you have experience related to the product.

Explanation:

The reference price is the price buyers are willing to pay for a given good or service based on different features of the product such as quality, availability and the type of need it satisfies compared to what competitors can offer.  

<em>The real price of the product is considered adding the value individuals can provide to the good or service based on the interaction they have had with similar items</em>. Quality information might influence the reference price to be set.

7 0
2 years ago
Department G had 3,600 units, 40% completed at the beginning of the period, 12,000 units were completed during the period, 2,000
serious [3.7K]

Answer:

<u>Equivalent Units Materials    10400      </u>

<u>   Equivalent Units  Conversion 10960     </u>

<u>Cost Per Equivalent Unit   Materials      $9.8365 </u>

<u>Cost Per Equivalent Unit D.  Labor      $ 7.2810 </u>

<u>Cost Per Equivalent Unit    FOH     $ 2.2992</u>

Explanation:

Particulars       Units        % of Completion               Equivalent Units

                                      Materials Conversion      Materials Conversion

Complete     12000        100          100                12000         12000

Add EWIP     2000        100           20                 2000             400

<u>Less BWIP    3600        100           40                 3600            1440         </u>

<u>Equivalent Units                                                  10400         10960     </u><u> </u>

<u />

<em><u>In FIFO as the name suggests we take out the units first completed. So we deduct the Beginning Work in Process (BWIP) from the sum of completed units and ending work in process (EWIP).</u></em>

<em />

Costs added during period: Direct materials  Direct labor  Factory overhead                          

                                   (10,400 at $9.8365)

                                                102,300          79,800          25,200

<u>Equivalent Unit                         10400           10960           10960</u>

<u>Cost Per Equivalent Unit         $9.8365        7.2810          2.2992</u>

<u />

<u />

3 0
3 years ago
Daget Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the total estimated
AnnyKZ [126]

Answer:

$15.34

Explanation:

The formula and the computation of the predetermined overhead rate is shown be

Predeterminer overhead rate = Manufacturing overhead ÷ direct labor hours

where,

Manufacturing overhead is

= $359,860 + $8,300

= $368,160

And, the direct labor hours is 24,000

So, the predetermined overhead rate is

= $368,160 ÷ 24,000

= $15.34

4 0
3 years ago
a process with a one-sided specification has a Cpk of 0.22. What is the percentage of the production falls beyond the specificat
mihalych1998 [28]

Answer:

≈ 25%

Explanation:

Given data:

Cpk = 0.22

Determine The percentage of production that falls beyond the specification limit ( assuming normal distribution )

first calculate the value of Z ;

Cpk = Z /3

hence Z = Cpk * 3 = 0.22 * 3 = 0.66

The percentage of the production can be determined by

( 1 - value obtained from the standard normal table for the value of Z =0.66 )

1 - 0.7454 = 0.2546  ≈ 25%

8 0
2 years ago
The partnership agreement for Wilson, Pickett &amp; Nelson, a general partnership, provided that profits be shared between the p
Dovator [93]

Answer:

$27,500

Explanation:

The computation of the partnership loss borne by the Nelson is shown below:

= (Contributed amount by Nelson) ÷ (Firm contribution amount) × (loss incurred)

= ($50,000) ÷ ($200,000) × ($110,000)

= 0.25 × $110,000

= $27,500

The firm contribution amount would be calculated below:

= Wilson contributed amount + Pickett contributed amount + Nelson contributed amount

= $100,000 + $50,000 + $50,000

= $200,000

8 0
3 years ago
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