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Minchanka [31]
3 years ago
10

What is the IRR of the following set of cash flows? (Do not round intermediate calculations. Enter your answer as a percent roun

ded to 2 decimal places, e.g., 32.16.)
Year Cash Flow
0 –$ 15,800
1 6,500
2 7,800
3 6,300
IRR %
Business
1 answer:
MrRissso [65]3 years ago
3 0

Answer: 14.59%

Explanation:

The Internal Rate of Return(IRR) is the discount rate that brings the Net Present Value to zero. It is used to decide the viability of projects. The project is generally considered viable if the Cost of capital is less than the IRR.

You can use Excel to calculate the IRR;

= IRR(-15,800,6,500,7,800,6,300)

From the picture attached you can see that the IRR is 14.59%

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Suppose 2 athletes sign 10-year contracts for $80 million. In one case, we're told that the $80 million will be paid in 10 equal
maxonik [38]

Answer:

player 2 is signing a better contract

Explanation:

the present value of an annuity (player 1) = annual payment x annuity factor

assuming that the interest rate is 10%

present value = $10 million x 6.1446 (PV annuity factor, 10%, 10 periods) = $61.446 million

player 2's contract

the present value of a growing annuity = [payment / (i - g)] x {1 - [(1 + g) / (1 + i)]ⁿ} = [$10 / (10% - 5%)] x {1 - [(1 + 5%) / (1 + 10%)]¹⁰} = $200 x 0.372 = $74.398 million

4 0
3 years ago
A manufacturing company has units to produce of 940 units for the month. Each unit requires 3.5 hours of labor to produce. The c
elena-s [515]

Answer:$49,350

Explanation:

The total cost of direct labor for the month will be:= 940 units × 3.5 × $15= $49,350

8 0
1 year ago
Refer to the information for Alfombra Inc. below.
Ann [662]

Answer:

<u>cost to be accounted for:</u>

beginning cost: 180,000

added cost        756,000

total cost         <em>   936,000</em>

<u>cost accounted for:</u>

ending WIP 30,000 x 5.2           =  156,000

trasnsferred-out: 150,000 x 5.2 =  780,000

total cost accounted for           <em>      936,000</em>

Explanation:

150,000 completed

 50,000 at 60%

weighted average equivalent unit:

complete + percetage of completion ending WIP

150,000 + 50,000 x 60% = 180,000

Cost per unit:

936,000 / 180,000 = 5.2 dollar per unit

we should match the total cost pool with the ending WIP and trasnferred out units

4 0
3 years ago
Consider the following scenario to answer the following questions: Kukla makes tables, with an opportunity cost of 3 rugs per ev
mote1985 [20]

Answer:

E

Explanation:

In this question, we are told to state what the reaction of Koka and Zola will be;

Kukla and Zola both like the proposal. As according to the given opportunity cost for Kukla (3 rugs per every 4 tables) she can get 1.5 rugs for 2 tables .But with the offer made now she can get 2 rugs for giving 2 tables.

Given the opportunity cost for Zola ( 2 tables per every 3 rugs ) she must give 3 rugs for getting 2 tables. But with the offer made she can now get 2 tables for giving away only 2 rugs .

So both Kukla and Zola are happy with the offer.

3 0
3 years ago
Read 2 more answers
Marketing manager Ricki Stephens reviewed her marketing information system to learn who was buying her company's products and at
Rudik [331]

Answer:

Letter A is correct. <em>Data warehouse.</em>

Explanation:

Data warehouse acts as a digital data warehouse of the company, whose main purpose is to store relevant information about the organization so that through history it can provide reports that help the company in the decision making process according to the facts found.

The biggest benefits found in the database system are greater flexibility and control of information and research, and the creation of standards that correct data and coordinate and optimize system data to ensure greater effectiveness.

7 0
2 years ago
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