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Lelu [443]
3 years ago
6

Fly High Inc. intends to invest in a new airplane. Information regarding the investment in the airplane is given below: Project

A Life of project 5 years Initial investment $33,277,644 Net annual after-tax cash inflow $7,900,000 The cost of capital for the company is 8%. Calculate the internal rate of return (IRR) for the new airplane. a.10% b.8% c.6% d.5%
Business
1 answer:
grin007 [14]3 years ago
4 0

Answer:

c.6%

Explanation:

IRR is the interest rate at which the NPV of a project is zero

Use the following steps to determine the IRR

1. Determine the cash flows

2. Calculate the Total Annual cash flow

3. Use the IRR function in Excel to calculate the IRR for the calculated cash flow

The working is attached with this answer please find it.

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Rodriguez Company completed its income statement and comparative balance sheet for the current year and provided the following i
KATRIN_1 [288]

Answer:

Net Cash provided by Operating Activities = $13,000  

Explanation:

                      Rodriguez Company

               Statement of Cash flow(Partial)

Cash flows from operating activities       Amount

Net Loss                                                       $(6,920)

Add: Depreciation                                        $7,600

Add: Increase in Salaries Payable             $11,200

Add: Decrease in Accounts receivable      $6,400

Add: Amortization of Copy Rights               $220  

Less: Decrease in Other accrued               $(5,500)

liabilities

Net Cash provided by Operating              $13,000

Activities

Workings

Accounts receivable decrease = $15,600 − $9,200

Accounts receivable decrease= $6,400

Salaries payable increase = $13,600 − $2,400

Salaries payable increase= $11,200

Other accrued liabilities decrease = $1,300 − $6,800

Other accrued liabilities decrease = - $5,500

8 0
4 years ago
Atlantis Fisheries issues zero coupon bonds on the market at a price of $455 per bond. If these bonds are callable in 5 years at
igomit [66]

Answer:

The yield to call is 2.24%.

Explanation:

To calculate the yield to call, you can use the following formula:

YTC = (C + (CP - P) / t) / ((CP + P) / 2)

YTC= Yield to call

C= Annual Coupon: 0

CP= Call price of the bond: $509

P= Price of the bond: $455

t= time remaining until call date: 5

YTC= (0+(509-455)/5)/((509+455)/2)

YTC=(54/5)/(964/2)

YTC= 10.8/482

YTC= 0.0224= 2.24%

3 0
3 years ago
Read 2 more answers
Bob agreed to tutor Lola in Spanish for two (2) hours and Lola agreed to pay $25.00 per hour for the tutoring services. Bob tuto
polet [3.4K]

Answer: discharged by performance

Explanation:

When parties to a contract are discharged from their duties as per the contract, it means that they are no longer party to the agreement. When this is done by performance, it means that the discharge was done because both parties have fulfilled the demands of the contract.

Bob agreed to tutor Lola for two hours and Lola agreed to pay Bob $50 for that. Bob then tutored her for the two hours and was paid the amount. The parties have therefore fulfilled their obligations to each other and so the contract has been satisfied.

5 0
3 years ago
Mi Ola swimwear may occasionally make changes to their corporate or business-unit strategies. Identify the item below that would
Ne4ueva [31]

Answer:

A) Offering a line of surf boards

Explanation:

If the company makes changes to how their products are made, e.g. different materials, colors, models, etc., they are not changing their corporate strategy, they are just modifying their product line. If they decide to start selling their swimsuits in a department store, they are increasing their outlets, that's all.

But when they decide to offer a very distinct product (a surfboard), then they are changing their corporate strategy from being just a clothing store to offering diverse products that can be used at a beach.

6 0
4 years ago
Evan speaks four languages and holds a degree in world history. What company might be interested in hiring Evan? A. a constructi
pogonyaev

Answer:

Part A which statement identifies the central idea of the text President Bush speech

Explanation:

3 0
3 years ago
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