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
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%

You might be interested in
The utility of a good or service 1. is synonymous with usefulness. 2. is the satisfaction or pleasure one gets from consuming it
Vanyuwa [196]

Answer:

B. is the satisfaction or pleasure one gets from consuming it.

Explanation:

The utility is the concept which marks the level of satisfaction that a person gets after consuming a particular good. The utility obtained cannot be measured in terms of the weight of the physical property of the goods. It is the result of the satisfaction of the customers after consuming it. The utility exists not in the product but the consumption of it.

4 0
4 years ago
True or false Verbal contracts can never be legally enforced
Dima020 [189]
I'm not completely sure, but I would say true. In court, it would be their word against the other person's word, and nothing could be legally done to enforce the verbal contract. Only written and signed contracts can be enforced legally. 

I hope this answer helped you! If you have any further questions or concerns, feel free to ask! :)
6 0
4 years ago
Read 2 more answers
You have been assigned the task of using the corporate, or free cash flow, model to estimate Petry Corporation's intrinsic value
Oxana [17]

Answer:

$40 million

Explanation:

The computation of stock price is shown below:-

For computing the stock price first we need to compute the firm value which is below:-

Firm value = Free cash flow-1 ÷ (Weighted average cost of capital - Growth rate)

= $70.0 million ÷ (10% - 5%)

= $70.0 million ÷ 5%

= $1,400 million

Stock price = (Firm value - Debt) ÷ Number of shares

= ($1,400 million - $200 million) ÷ 30 million

= $1,200 million ÷ 30 million

= $40 million

6 0
3 years ago
The salary foregone by a person who quits a job to start a business is an example of a(n) ________. Select one: A. depreciable c
Arturiano [62]

Answer:

C. opportunity cost

Explanation:

Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.

For example, let us assume that Amanda leaves her job where she earns $250,000 to start a business where she earns $500,000. Her opportunity cost is $250,000 which is the salary she forgoes when she decided to start her business.

I hope my answer helps you

3 0
4 years ago
Read 2 more answers
Why is it important to conduct market research on your target audience before building your marketing plan?
Margaret [11]
If you target who you are after and you will know how to reach them easier. You'll also be more focused plus more effective in your marketing strategies and be able to get a greater return on marketing investments.
3 0
3 years ago
Other questions:
  • Mr. Barker enjoys a comfortable retirement income. He recently had surgery and expected that he would have certain services and
    8·1 answer
  • Asiana, a fragrance manufacturer located in France, markets its products to the North American and Asian countries through indep
    8·2 answers
  • An information security analyst needs to work with an employee who can answer questions about how data for a specific system is
    8·1 answer
  • An entity entered into a contract to construct a building. Based on the contract’s terms, the entity appropriately determined th
    12·1 answer
  • Which of the following is a disadvantage of a sole proprietorship?
    10·1 answer
  • 24. One face of a cube has an area of 9 cm^2. What is the surface area and volume of the cube?
    7·1 answer
  • Compute the takt time for a service system that intended to perform a standardized service. The system will have a total work ti
    9·1 answer
  • The book value per share of stock is the amount of money an investor would have to pay to purchase a share of stock in an open m
    12·1 answer
  • A country has an absolute advantage in the production of a good if that country _____ a. has the lowest opportunity cost of prod
    12·1 answer
  • In actual practice, managers most frequently use which two types of investment criteria?.
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!