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pshichka [43]
3 years ago
10

Kermit plans to open a boutique. The initial investment is $10,000. He has to spend $1,500 in annual operations and maintenance.

The boutique generates $3,000 in revenues every year. Kermit uses a 10 year planning horizon and a MARR of 12%. The correctly calculated Rate of Return for this project is ________________%.
Business
2 answers:
bekas [8.4K]3 years ago
7 0

Year Initial Annual Maintenance Annual Revenue Total Cash Flow

0 -$10,000 -$10,000

1 -$1,500 $3,000 $1,500

2 -$1,500 $3,000 $1,500

3 -$1,500 $3,000 $1,500

4 -$1,500 $3,000 $1,500

5 -$1,500 $3,000 $1,500

6 -$1,500 $3,000 $1,500

7 -$1,500 $3,000 $1,500

8 -$1,500 $3,000 $1,500

9 -$1,500 $3,000 $1,500

10 -$1,500 $3,000 $1,500

Internal Rate of Return 8.1442% [IRR() in excel]

The rate of return is 8.1442 which is less than MARR of 12% investment is not worth it

Setler [38]3 years ago
3 0

Answer:

8.14

Explanation:

The Rate of Return is 8.14 from my calculations which you can find in the attached file.

Now since the Rate of return is 8.14. Which is less than MARR of 12%, it shows that investment is not good.

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Answer:

$7,200

Explanation:

The computation of the total manufacturing overhead assigned is shown below:

= ($168,640 + $127,840 + $554,400 + $1,078,000) ÷ $514,368

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Now  

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And,  

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So,  

Manufacturing overhead is

= 1920 × 375%

= $7,200

8 0
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r-ruslan [8.4K]

Answer and Explanation:

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Clara and Nathan have planned to merge their companies. They have met to put forth their respective proposals and the rationale
nikitadnepr [17]

Answer:

The correct answer is the option C: Clarification and justification.

Explanation:

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5 0
3 years ago
John invested $12,000 in the stock of Hyper Cyber. Eight years later, Hyper Cyber's shares reached $125,000, but John held onto
Nata [24]

Answer:

B. $12,000 is a sunk cost

Explanation:

By considering the given information, the cost that is correct is a sunk cost for $12,000

The sunk cost is the cost already incurred and will not be retrieved in the future. Plus, it's also termed a past cost.  

It is a useless cost and it can be avoided also.  

It is that cost that is not considered at the time of decisions making.

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5 0
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Read 2 more answers
Which of the following events would be likely to increaseincrease the supply of​ money?
geniusboy [140]

Answer:

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Explanation:

The discount rate is the interest rate charged by the Central bank when commercial banks borrows funds from it.

When the discount rate is lowered, excess reserves increase and money supply increases.

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I hope my answer helps you.

8 0
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