Answer:
the project's MIRR is 13.50 %.
Explanation:
MODIFIED INTERNAL RATE OF RETURN (MIRR)
-It is the rate that causes the Present Value of the Terminal Value (Future Cash flows at the end of the Project) to equal Present Value of Cash outflows.
-MIRR assumes a reinvestment rate at the end of the project
The First Step is to Calculate the Terminal Value at end of year 3.
Terminal Value (FV) = Sum of (PV x (1 + r) ^ 3 - n)
= $350 x (1.11) ^ 2 + $350 x (1.11) ^ 1 + $350 x (1.11) ^ 0
= $431.24 + $388.50 + $350.00
= $1,169.74
The Next Step is to Calculate the MIRR using a Financial Calculator :
(-$800) CFj
0 CFj
0 CFj
$1,169.74 CFj
Shift IRR/Yr 113.50 %
Therefore, the MIRR is 13.50 %
The answer is A. "lack" is a negative word and it is the only drawback.
Answer:
Image result for What does the rule of 72 tell us? What is the formula used? Amy heard Dave Ramsey say that she could expect an average of 12% returns when she invests in mutual funds. Amy has $10,000 to invest. How long will it take Amy’s investment to double?
Divide 72 by the interest rate on the investment you're looking at. The number you get is the number of years it will take until your investment doubles itself.
Explanation:
Answer:
Option C $10,000
Explanation:
Taxable income is $8000 and the tax allowable depreciation (MACRS) is $3000. To arrive at accounting income we have to deduct Tax allowable depreciation from the taxable income and add the accounting depreciation which is $1000.
This implies:
Accounting profit = Taxable Income + Tax allowable depreciation - Tax disallowed expense + Tax disallowed income
By putting values we have:
Accounting profit = $8000 + $3000 - $1000 = $10,000
Answer:
D
Explanation:
Delivery costs are mixed and utilities are variable.
Variable costs are cost that changes in direct proportion to the level of production. This means that when the variable cost increases then more units are produced and decreases when less units are produced.
Mixed costs also known as semi-variable costs have properties of both fixed and variable costs due to the presence of both variable and fixed components in them.
In this case utilities is a variable cost, it increases as the units increase, while delivery cost is a mixed cost, it has the element of both fixed and variable.
A fixed cost does not change with the level of activity it remains the same.
