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Crazy boy [7]
3 years ago
9

West Street Automotive is considering adding state safety inspections to its service offerings. The equipment necessary to perfo

rm these inspections will cost $551,000 and will generate cash flows of $193,000 over each of the next five years. If the cost of capital is 17 percent, what is the MIRR on this project
Business
1 answer:
Over [174]3 years ago
6 0

Answer:

19.7%

Explanation:

The modified internal rate of return is a capital budgeting method used to determine the profitability of an investment. The MIRR assumes that cash inflows are reinvested at the firm's cost of capital and outflows are financed at the firm's financing cost.

MIRR = (Future value of a firm's cash inflow / present value of the firm's cash outflow)^ (1/n)  - 1

Future value = payment x[ (1 + interest rate)^n - 1 ] / interest rate

$193,000 x (1.17^5) - 1 / 0.17 = 1353779.24

1353779.24 / $551,000) ^0.2 - 1 = 19.7%

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Wallis company manufactures only one product and uses a standard cost system. the company uses a predetermined plantwide overhea
ElenaW [278]

Answer:

Estimated manufacturing overhead rate= $10 per direct labor hour

Explanation:

Giving the following information:

estimated manufacturing overhead= $2,886,000

estimated direct labor dollars= 288,600

To calculate the estimated manufacturing overhead rate we need to use the following formula:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 2,886,000/288,600= $10 per direct labor hour

8 0
4 years ago
What must a project manager do before creating a dependency schedule?
lora16 [44]
D. Identify which tasks are primary and which are dependent.
3 0
4 years ago
Read 2 more answers
France and England both produce cheese and cloth under conditions of constant opportunity costs. France will have a comparative
dem82 [27]

Answer:

D

Explanation:

A country has comparative advantage in production if it produces at a lower opportunity cost when compared to other countries.

For example, England produces 10 yards of clothes and 5 kg of cheese. France produces 5 yards of clothes and 10 kg of cheese.  

for England,  

opportunity cost of producing clothes = 5/10 = 0.5

opportunity cost of producing cheese = 10/5 = 2

for France,  

opportunity cost of producing cheese = 5/10 = 0.5

opportunity cost of producing clothes = 10/5 = 2

England has a comparative advantage in the production of clothes and France has a comparative advantage in the production of cheese

5 0
3 years ago
Judy Olsen, Kristy Johnston, and their mother, Joyce Johnston, owned seventy-eight acres of real estate property on Eagle Creek
Neporo4naja [7]

Yes , Judy and Kristy have an enforceable binding contract

Explanation:

Kristy Johnston, Judy Olsen, and Joyce Johnston, their mother, owned real estate as common buyers. After Joyce died, she left Kristy her one-third share in the house. Kristy sent Judy a letter in 2009 promising Judy to purchase or sell Judy's share in the property.  

Judy accepted the sale bid from Kristy. Kristy then tried to refuse Judy's approval and to cancel her bid for sale. Judy lodged a Kristy lawsuit.

The court granted the summary judgment to Judy finding that a contract had been drawn up between the letters exchanged between Judy and Kristy which satisfied the frauds ' status. The Supreme Court ruled that the district court decided out that an enforceable arrangement was established by exchanging letters from the parties.

4 0
4 years ago
______ effect happens when the place a product was manufactured influences how consumers perceive the product.
Assoli18 [71]

The country of origin effect happens when the place a product was manufactured influences how consumers perceive the product.

<h3>What is a country of origin effect?</h3>
  • COO stands for Country of Origin.
  • The practice of marketers and consumers identifying brands with countries and basing purchasing decisions on the country of origin of the product is referred to as effect.
  • The country of origin effect occurs when the location of a product changes how consumers perceive the product.
  • Consumers assume product features based on country stereotypes and previous encounters with products from that country.
  • As a result, a COO cue has become an essential information cue for customers who are more exposed than ever before to internationalized product selection and multinational marketing.

Therefore, the country of origin effect happens when the place a product was manufactured influences how consumers perceive the product.

Know more about the country of origin effect here:

brainly.com/question/20716099

#SPJ4

8 0
2 years ago
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