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Xelga [282]
3 years ago
8

Casa Del Sol Property Development Company is refurbishing a 200-unit condominium complex at a cost of $1,875,000. It expects tha

t this will lead to expected annual cash flows of $415,350 for the next seven years. What internal rate of return can the firm earn from this project? (Do not round intermediate computations. Round final answer to the nearest percent.)
Business
1 answer:
antiseptic1488 [7]3 years ago
7 0

Answer:

12.34%

Explanation:

initial outlay = -$1,875,000

NCF year 1 = $415,350

NCF year 2 = $415,350

NCF year 3 = $415,350

NCF year 4 = $415,350

NCF year 5 = $415,350

NCF year 6 = $415,350

NCF year 7 = $415,350

using a financial calculator or an excel spreadsheet, IRR = 12.3.4%

the internal rate of return is the discount rate at which a project's NPV = 0

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If the dollar interest rate is 10 percent, the euro interest rate is 6 percent, then an investor should:
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Invest only in dollars
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3 years ago
Classify technical education with example?​
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Answer:

A kind of education which equips with skills that involve the use of practical approaches and other physical instruments in executing projects. Technical education is learning something about a specific work scientifically in detail and practical.

A few common examples include schools and education programs that focus on science and engineering, information and technology, architecture and design, business and fipnance, health and social services, education and child development, hospitality and tourism, or the fine and performing arts.

7 0
3 years ago
2. QuickDraw performs drafting services for local builders. At the end of its first year of operations, QuickDraw had performed
Step2247 [10]

Answer:

$3,500 and deferred tax liability

Explanation:

The computation of the deferred tax is shown below:

= Service performed × tax rate

where,

Service performed is $10,000

And, the tax rate is 35%

Now placing the values

The amount of deferred tax is

= $10,000 × 35%

= $3,500

This amount reflect the deferred tax liability

We simply multiplied the service performed amount with the tax rate so that the deferred tax could come

4 0
3 years ago
A small craft store located in a kiosk expects to generate annual cash flows of $6,800 for the next three years. At the end of t
Dafna11 [192]

Answer:

The monetary value is $24,201.23

Explanation:

Giving the following information:

Cash flows:

Year 1= $6,800

Year 2= 6,800

Year 3= 6,800

Year 4= $15,000.

The discount rate is 15 percent.

We need to discount each cash flow to the present value:

PV= FV/(1+i)^n

Year 1= 6,800/1.15= 5,913.04

Year 2= 6,800/1.15^2= 5,141.78

Year 3= 6,800/1.15^3= 4,471.11

Year 4= 15,000/ 1.15^4= 8,576.30

Total= $24,201.23

6 0
3 years ago
Janet was willing to contribute $30 this year to her local college radio station. However, after learning that the radio station
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Answer:

Free rider problem

Explanation:

A popular term that describes a situation when those who benefit from resources, or services offered to the community do not pay for them.

The free-rider problem usually occurs with goods or services which are non-restrictive like radio services.

Since Janet does not pay for the radio services and yet benefits from it, she is a free rider.

3 0
4 years ago
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