Answer:
c. 11.32; reject
Explanation:
The IRR is the rate at with net present value equals zero.
![\left[\begin{array}{cc}Period&Cash Flow\\0&-152,000\\1&+60,800\\2&+62,300\\3&+65,000\\4&0.113237029\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bcc%7DPeriod%26Cash%20Flow%5C%5C0%26-152%2C000%5C%5C1%26%2B60%2C800%5C%5C2%26%2B62%2C300%5C%5C3%26%2B65%2C000%5C%5C4%260.113237029%5C%5C%5Cend%7Barray%7D%5Cright%5D)
To solve it you use excel or a financial calculator:
0.1132370
Because the IRR is lower than minimun aceptable rate of return, the project should be rejected.
Answer: Pay the X amount of a service or prescription that is not covered by insurance.
Explanation:
Answer: ARR = Average profit/Initial outlay x 100
ARR = $19,000/$250,000 x 100
ARR = 7.60%
The correct answer is C
Depreciation = Cost - Residual value/Estimated useful life
= $250,000 - $20,000/5 years
= $46,000 per annum
Average profit = Total profit/No of years
= $325,000/5
= $65,000
$
Average profit 65,000
Less: Depreciation 46,000
Average profit after depreciation 19,000
Explanation: In determining the accounting rate of return of the investment, there is need to calculate depreciation using straight line method. The amount of depreciation would be deducted from the average profit so as to obtain the average profit after depreciation. The average profit would be divided by the initial outlay in order to obtain the accounting rate of return.
Advertising would be something over the world or state country etc that many people will see something that is advertised on tv or a bill board, personal selling would be something that your showing off on your on like on ebay etc that isnt sponsered by any companys and is for your own doing . Hope this helped ! (:
