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expeople1 [14]
3 years ago
7

1. Merage Company is considering investing in a new project. The project will need an initial investment of $2,100,000 and will

generate $1,200,000 (after-tax) cash flows for three years. Calculate the IRR for the project.2. Calculate the payback period:C0 = -2000, C1 = +600, C2 = +1400 and C3 = +5000A. Three yearsB. One year.C. Two years.D. None of the above.
Business
1 answer:
Bumek [7]3 years ago
8 0

Answer:

1. 32.68%

2 .C. Two years

Explanation:

1. Using Excel or a scientific calculator, you can calculate the IRR which is the discount rate that makes the Net Present Value to equal $0.

= IRR(-2100000,1200000,1200000,1200000)

= 32.68%

2. The Payback period is how long it takes for the cash inflows to pay off the original investment.

Original Investment = -$2,000

After year 1 = -2,000 + 600 = -$1,400

After year 2 = -1,400 + 1,400 = $0

It took 2 years to payback the original investment so Two years is the Payback period.

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The Wet Corp. has an investment project that will reduce expenses by $25,000 per year for three years. The project's cost is $55
posledela

Answer:

$22,671

Explanation:

The calculation of the cash flow for the year one is as follows:

Given amount                                    $25,000

Less: Depreciation                            -$18,150

Earning before income and taxes    $6,850

Less: Income tax expense                -$2,329     ($6,850 × 34%)

Earning after taxes                            $4,521

Add: Depreciation expense              $18,150

Annual cash flow                               $22,671

The depreciation expense is computed below:

= $55,000 × 33%

= $18,150

3 0
2 years ago
Moving truck makes the displacement of (180m) toward east in period of(9.0s). What is the average velocity of the truck?someone
makvit [3.9K]

Answer:

20m/s due east

Explanation:

Given parameters:

Displacement  = 180m due east

Time taken = 9s

Unknown:

Average velocity of the truck  = ?

Solution:

The average velocity is the displacement divided by the time taken;

   Average velocity  = \frac{displacement}{time}  

Insert the parameters and solve;

 Average velocity = \frac{180}{9}   = 20m/s due east

6 0
3 years ago
Read 2 more answers
Wormwood, Ltd., produces a variety of furniture products. The planning committee wants to prepare an aggregate plan for the next
Brums [2.3K]

Answer:

Wormwood limited

Production plan that will yield the least cost of $49,630 is shown in the attached document.

It entails maxing out the regular capacity from period 1 to 5, and using regular to produce only 140 units in period 6

It further entails using overtime to produce 10 units from period 1 to 5. And subcontracting only in period 4 to cover the demand/production gap.

This will keep inventory of 10 units in period 2, which is carried into period 3 and consumed in period 4.

4 0
3 years ago
Wonder Corporation declared a common stock dividend to all shareholders of record on September 30, 20X3. Shareholders will recei
lesantik [10]

Answer:

<em>C. $0 dividend income and a tax basis in the new stock of $56.25 per share</em>

Explanation:

Existing tax basis

= 300 shares * $90

= $27,000

Latest stocks attributable to stock dividend to be given to Diana,

= 300 * 3/5

= 180

Therefore the total number of shares will be, after dividend,

= 180 + 300

= 480

So new tax basis per share

=27,000 / 480

<u><em>=  $56.25</em></u>

7 0
2 years ago
Terrance has just signed a contract with a bank to get a loan to buy a new house. What is TRUE about this contract? A. Both the
borishaifa [10]

Answer: C. Both parties now have an obligation to their agreement.

Explanation:

When parties get into a contract, they have a legal obligation to each other to fulfill their part of the agreement or the other party will be able to seek redress in a court of law.

Terrance and the bank are now parties to an agreement to provide Terrence with a loan to buy a house. The bank will have to fulfill this obligation by giving Terrence the loan and Terrence will fulfill his side of the agreement by making payments as stipulated in the loan covenant.

5 0
2 years ago
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