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hram777 [196]
2 years ago
14

What is the IRR for a project that costs $100,000 and provides annual cash inflows of $30,000 for 6 years starting one year from

today
Business
1 answer:
Juliette [100K]2 years ago
6 0

Answer:

19.91 %

Explanation:

The Internal Rate of Return (IRR) is the Interest rate that will make the present values of cashflows equal to the price of the Initial investment.

<u>Calculation of IRR of Project A using a Financial Calculator : </u>

($100,000) CFj

$30,000         Cfj

$30,000         Cfj

$30,000         Cfj

$30,000         Cfj

$30,000         Cfj

$30,000         Cfj

Shift IRR/YR 19.9054 or 19.91 %

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The risk-free rate is 3.4 percent and the expected return on the market is 10.8 percent. Stock A has a beta of 1.18. For a given
otez555 [7]

Answer:

The systematic portion of the unexpected return is 1.180% and the unsystematic portion was 0.288%

Explanation:

E(R) = 0.034 + 1.18*(0.108 - 0.034) = 0.12132

R - E(R) = 0.136 - 0.12132 = 0.01468

RM - E(RM) = 0.118 - 0.108 = 0.01

[RM - E(RM)] * Beta = 0.01 * 1.18 = 0.0118 = 1.180%

[R - E(R)] - [RM - E(RM)] * Beta = 0.01468 * 0.0118 = 0.00288 = 0.288%

8 0
3 years ago
Shane, a sales manager, remarked that typically, her employees sincerely and positively overstate their job performance and abil
e-lub [12.9K]

Answer:

C) holier-than-thou

Explanation:

A holier than thou appeal refers to an attitude of superiority. It was originally used as a religious expression to show that someone was more "holy" or more religious than other people.

But this approach of feeling superior also takes place in a business when a member of the organization feels that his/her job is better and more important than the jobs and performance of the rest. It implies being super optimistic about your own abilities and capabilities, enough for them to diminish others.

E.g. how many times have you heard someone else say that if it was him/her that was doing something important, everything would be great and flow smoothly, because they are the best in doing this and that, and about everything else.

8 0
3 years ago
Consolidated Enterprises issues $1 million face value, five-year bonds with a coupon rate of 6.0 percent. At the time of issuanc
valentinak56 [21]

Answer:

$1,035,459.51

Explanation:

First we must determine the issuing value:

  • cash flow 1 = $60,000
  • cash flow 1 = $60,000
  • cash flow 1 = $60,000
  • cash flow 1 = $60,000
  • cash flow 1 = $1,060,000

using an excel spreadsheet to calculate the bond's price with a discount value of 5%:

the bonds were sold at $1,043,294.77

the effective interest expense = bond's price x market interest = $1,043,294.77  x 5% = $52,164.74

bond's value = bond's price - (coupon payment - effective interest) = $1,043,294.77 - ($60,000 - $52,164.74) = $1,035,459.51

8 0
3 years ago
Bethany Richards is a book rep. She sells books to schools and libraries. She earns a 9 percent commission on every book she sel
Zanzabum

Answer:

The correct answer is: $284.10.

Explanation:

The percentage of a number represents a part of it. Typically percentages are used when a certain amount of money is to be paid out of another amount because of services being provided or for using the money as instruments of investments like bank loans.

In Bethany Richards' case, she receives 9% in commissions for all the books she sales. Then,

Total amount for books sold = $963.25 + $742.00 + $614.35 + $837.10

Total amount for books sold = $3156.70

Thus,

Bethany's monthly commission = $3156.70 x (9%)

Bethany's monthly commission = $284.10

6 0
3 years ago
suppose a worker quits her job in order to look for new work. after a week or two of looking, she finds a new job. during her br
Alinara [238K]

Suppose a worker quits her job in order to look for new work. after a week or two of looking, she finds a new job. during her brief job search, she experienced frictional unemployment

<h3>What is frictional Unemployment</h3>

Frictional unemployment occurs when an individual is temporarily unemployed as a result of searching for new or better job.

This is a time of transition usually from an existing job to a new one.

Therefore, Suppose a worker quits her job in order to look for new work. after a week or two of looking, she finds a new job. during her brief job search, she experienced frictional unemployment

Learn more on frictional unemployment below,

brainly.com/question/11481076

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3 0
1 year ago
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