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masha68 [24]
3 years ago
10

Galindo Long-Haul, Inc., is considering the purchase of a tractor-trailer that would cost $178,848, would have a useful life of

8 years, and would have no salvage value. The tractor-trailer would be used in the company's hauling business, resulting in additional net cash inflows of $36,000 per year. The internal rate of return on the investment in the tractor-trailer is closest to:
Business
1 answer:
kondor19780726 [428]3 years ago
8 0

Answer:

the internal rate of return is 12%

Explanation:

The computation of the internal rate of return is as follows;

Year        Cash flows            

0             -$178,848

1                $36,000

2               $36,000

3               $36,000

4               $36,000

5               $36,000

6               $36,000

7               $36,000

8               $36,000

Now apply the IRR formula

= IRR()

After applying it, the internal rate of return is 12%

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Answer:

2018: 8 months

Depreciation= $916,67

2019: full year

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Explanation:

Giving the following information:

Taco Hut purchased equipment on May 1, 2018.

Price:  $15,000.

Residual value: $4,000

Useful life: 8 year

We need to calculate the depreciation for 2018 and 2019 using straight-line method:

Depreciation= (purchase price- residual value)/useful life

Depreciation= (15000-4000)/8= $1375

2018: 8 months

Depreciation=(1375/12)*8= 916,67

2019: full year

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3 years ago
Proper marketing objectives have required elements to make them effective. Which of the following is the best example of how a m
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Explanation:

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How is chinese food made soo gosh darn good?​
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