Answer:
$30,000 increase
Explanation:
Piper Corp is operating at 70% capacity, and so we can produce the unit in-house at no increase to fixed cost we are already incurring. So we assume fixed cost for the extra production is zero
Without fixed cost the unit can be produced at $26, so cost of producing the units needed= 26*15,000= $390,000
To buy the product we need $24 per unit, so the cost of buying the needed units is= 24* 15,000= $360,000
The differential cost of making the part rather than purchasing it = Cost of inhouse production- Cost of Buying= 390,000- 360,000= $30,000
Answer:
MIRR -16.50%
They should reject the project is it destroys capital it do not meet to pay up the cost of the investment.
A typical firm’s IRR will be greater than its MIR
If the project yields higher than the cost of capital the IRR will be higher than the MIRR as reinvest the cashflow at the project yield rather than copany's cost of capital, thus it overstate the return.
Explanation:

WACC (cost of capital, reinvestment and financiation rate) = 7%
<em>Cash inflow:</em>
Year 1 275000 336,886.825
Year 3 450000 481500
Year 4 450000 450000
Total 1,268,386.825
<em>Cash outflow:</em>
F= -2,500,000
Year 2 -125000 - 109, 179.841
Total 2,609,179.841
Now we can solve for MIRR:
![MIRR = \sqrt[n]{\frac{FV \: inflow}{PV \: outflow}} -1](https://tex.z-dn.net/?f=MIRR%20%3D%20%5Csqrt%5Bn%5D%7B%5Cfrac%7BFV%20%5C%3A%20inflow%7D%7BPV%20%5C%3A%20outflow%7D%7D%20-1)
![MIRR = \sqrt[4]{\frac{1,268,386.82}{2,609,179.84}} -1](https://tex.z-dn.net/?f=MIRR%20%3D%20%5Csqrt%5B4%5D%7B%5Cfrac%7B1%2C268%2C386.82%7D%7B2%2C609%2C179.84%7D%7D%20-1)
MIRR - 16.49991% = -16.50%
Answer:
B the Ribbon
Explanation:
The Ribbon is where you can change the font color
Let x = amount invested in 6% account
300 + x = amount invested in 8% account
6%x + 8%(300 + x) = 94
0.06x +0.08(300 + x) = 94
0.06x + 24 + 0.08x = 94
0.14x + 24 = 94
0.14x = 94 – 24
0.14x = 70
x = 70/0.14
x = 500
Amount invested in 6% account = $500
<span>Amount invested in 8% account = $300 + x
= $300 + $500 = $800</span>
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