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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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3 years ago
Cash paid to retire notes $ 112​ Common shares acquired for treasury 172​ Proceeds from issuance of preferred stock 254​ Proceed
arsen [322]

Answer:

$176 million

Explanation:

The calculation of net cash inflows from financing activities is shown below:-

Net cash inflows from financing activities

Proceeds from issuance of preferred stock $254 million

Proceeds from issuance of subordinated  bonds $292 million

Less: Cash dividends paid on preferred stock (86) million

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Less: Common shares acquired for treasury (172) million

Net cash inflows from financing activities $176 million

The positive sign represents the cash inflow and the negative sign represents the cash outflow

6 0
3 years ago
You sold ten put contracts on Cross Town Bank stock at an option price per share of $0.85. The options have an exercise price of
Gnoma [55]

Answer:

-$4,150

Explanation:

Calculation to determine your net profit or loss on this investment

Using this formula

Net profit/Loss=(Option price per share-Exercise price+Stock price)×100×10

Let plug in the formula

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Net loss =-$4.15×100×19

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Therefore your net loss on this investment is -$4,150

8 0
3 years ago
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Lesechka [4]

Answer:

fixed-position

Explanation:

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Ivory purchased a car for $24,000. The annual interest rate on the loan is 3.5%. She will make payments for 6 years. What is Ivo
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