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daser333 [38]
2 years ago
5

Use the following information for the Quick Study below. Skip to question [The following information applies to the questions di

splayed below.] Park Co. is considering an investment that requires immediate payment of $30,455 and provides expected cash inflows of $9,400 annually for four years. Assume Park Co. requires a 7% return on its investments. QS 24-3 Internal rate of return LO P4 1-a. What is the internal rate of return? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your present value factor to 4 decimals.) 1-b. Based on its internal rate of return, should Park Co. make the investment?
Business
1 answer:
Arada [10]2 years ago
6 0

Answer and Explanation:

a. The computation of the internal rate of return is shown below:

Given that

The expected cash inlfows would be $9,400 for four years each

Rate of return is 7%

The Initial investment is $30,455

Based on the above information

The net present value is

= $9,400 × PVIFA factor for 7% at 4 years - $30,455

= $9,400 × 3.3872 - $30,455

= $31,840 - $30,455

= $1,385

Now the present value factor is

= $30,455 ÷ $9,400

= 3.2399

Now based on the factor table, the rate should be 9% for four years

b. Yes depend upon the internal rate of return, the park co should make the investment

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Answer:

Option D. Entry into the European market by Home Depot.

Explanation:

The reason is that the strategic actions are long term actions and are market based moves which bounds the organizational resources for implementation and are also very difficult to reverse.

So here use of coupons, fare increases and two for one offers are easily reversible, requires fewer organizations resources for implementation and short term decisions which means these are tactical actions.

Whereas the decision to enter european market by Home Depot is long term decision, bounds organization resources for implementation and is very difficult to implement or reverse the actions once taken, so it is strategical action of Home Depot.

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3 years ago
The following exchange demonstrates which problem solving technique?We pay higher costs than we need to when we go bowling becau
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A.Fishbone Diagram because that's the answer
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3 years ago
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moriband corp. paid a dividend of $2.15 yesterday. the company’s dividend is expected to grow at a steady rate of 5 percent for
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The present market price of Moribund stock stands at $22.58.

<h3>What is market price?</h3>
  • Market value is another term for current price. It is the most recent price at which a share of stock or other security was traded. The current price serves as a baseline in an open market.
  • The market price is the current cost of purchasing or selling an asset or service. The details of supply and demand decide the market price of an investment or assistance.
  • The market price is the price at which quantity supplied equals quantity demanded.
  • The market price is the price that exists on a specific day or at a specific time. It is the result of market supply and demand. Normal prices, on the other hand, are the result of long-term demand and supply.

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7 0
1 year ago
The business arrangement in the newspaper industry in which two separately owned papers in the same city are permitted to combin
musickatia [10]

Answer: Joint operating agreement

Explanation:

 The joint operating agreement is one of the concept that helps in protecting the business or the industry from the failure that helps in governing the partnership between any two organization.

In this type of agreement any two organization are basically contributing their power and the resources for producing the effective result.

According to the given question, the newspaper industry is one of the example of joint operating agreement in which two companies are permitted for combining their business. Therefore, Joint operating agreement is the correct answer.

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3 years ago
Assume that the market for Good X is defined as follows: QD = 64 - 16P and QS = 16P - 8. If the government imposes a price floor
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Answer:

The total loss in welfare to the economy will be -$32.

Explanation:

By intersecting the supply function QS to the demand function QD, we will find the equilibrium price:

QD = QS

16P - 8 = 64 - 16P

16P + 16P = 64 +8 =

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Replacing the equilibrium price either in QS or QD, we foind the equilibrium quantity:

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RN = 32 * $3 = $96

Therefore the total losses is find by subtracting the revenue at the goverment price floor RN to the revenue at the equilibrium price RE:

LT = RE - RN

LT = $64 - $96 = -$32

6 0
3 years ago
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