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Cerrena [4.2K]
3 years ago
14

Iggy Company is considering three capital expenditure projects. Relevant data for the projects are as follows.

Business
1 answer:
prisoha [69]3 years ago
7 0

Answer:

Depreciation amount has to be added back to the annual income because it is a non cash expense.

Project 22A

Depreciation = 242,000 / 6 years

= $40,333.33

Annual income = 40,333.33 + 16,890

= $57,223.33

IRR using Excel is:

= 11%

Project 23A

Annual income = 20,710 + 271,500 / 9 years

= $50,876.67

IRR = 12%

Project 24A

Annual income = 15,700 + 283,000 / 7 years

= $56,128.57

IRR = 9%

<em></em>

<em>Note: Look at the formula bar to see how IRR was calculated. </em>

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Only in certain cases using special hand tools should avoid the point of operation an acceptable  substitute for guards on a machine.

Only in certain cases

<u>Explanation:</u>

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Laborers ought to have the option to perceive the perils related to the unique. Wrenches must not be utilized when jaws are sprung to the point that slippage instruments should be outfitted with security gatekeepers to ensure laborers.

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After listening to your office mate describe her frustrations with a team that can't agree on how to approach the task the clien
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3 years ago
Bermuda Triangle Corporation (BTC) currently has 520,000 shares of stock outstanding that sell for $85 per share. Assume no mark
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a. BTC has a five-for-three stock split.

new number of shares outstanding = (520,000 / 3) x 5 = 866,666.67 ≈ 866,667

new market price per stock = ($85 / 5) x 3 = $51

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new number of shares outstanding = 520,000 x 1.12 = 585,400

new market price per stock = $85 / 1.12 = $75.89

c. BTC has a 43.5 percent stock dividend.

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6 0
3 years ago
Assume that Jackson is a​ price-taker and the current wholesale market price is $7.30 per can of paint. What is the target total
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Answer:

Jackson's target total cost of producing and selling 6 million cans of paint of $31,800,000 will enable it to reach stockholders' profit goals of $6 million.

The implication is that it should not allow its total costs (Production and other business expenses) to exceed $37,800,000.

This is because its sales revenue will be equal to $43,800,000 (6,000,000 * $7.30).

As such, Jackson can produce a can of paint for $5.30.  It can also incur an average business expense of $1.00 per can to maintain and reach its $6 million profit target.

Explanation:

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