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BlackZzzverrR [31]
3 years ago
6

Determine the internal rate of return for a project that costs $167,000 and would yield after-tax cash flows of $22,000 per year

for the first 5 years, $30,000 per year for the next 5 years, and $43,000 per year for the following 5 years. a) 14.94% b) 11.97% c) 13.38% d) 11.51% e) 14.19%
Business
1 answer:
-Dominant- [34]3 years ago
8 0

Answer:

e) 14.19%

Explanation:

Let IRR be x% . At IRR, Present value of inflows = Present value of outflows.

167,000 = 22000/1.0x + 22000/1.0x^2 + 22000/1.0x^3 + 22000/1.0x^4 + 22000/1.0x^5 + 30,000/1.0x^6 + 30,000/1.0x^7 + 30,000/1.0x^8 + 30,000/1.0x^9 + 30,000/1.0x^10 + 43000/1.0x^11 + 43000/1.0x^12 + 43000/1.0x^13 + 43000/1.0x^14 + 43000/1.0x^15

x = 0.1419

x = 14.19%

Hence, the internal rate of return for the project is 14.19%

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question content area if $354,000 of 10% bonds are issued at 95, the amount of cash received from the sale is
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The amount of cash received from the sale is calculated to be $336,300.

The amount of cash received from the sale of bonds can be calculated by using the following formula;

Cash received = Face value of bond × Bond quote

Since $354,000 of 10% bonds are issued at 95 in this case, therefore we substitute the values in the equation to determine the amount of cash received from the sale as follows;

Cash received = $354,000 × (95 / 100)

Cash received = $354,000 × 0.95

Cash received = $336,300

Therefore $336,300 cash is received from the sale if $354,000 of 10% bonds are issued at 95

To learn more about bonds; click here:

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Answer:

differentiated products.

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However differentiation of products is not a necessary condition for oligopoly. Products can be homogenous or differentiated.

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pochemuha

Answer:

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When the marginal social cost is greater than the ability and willingness to pay, the market will fail to optimally allocate resources. The government, as a result, will intervene.  

The government will use vouchers which will cause the marginal private benefit curve to shift upwards by the size of the per-unit voucher.

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40. If you could live anywhere, where would it be?
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