Which of the following typically have the highest auto insurance premiums?

Casey Nelson is a divisional manager for Pigeon Company. His annual pay raises are largely determined by his division’s return o

baherus [9]

Answer:

NPV: $180,285.49

IRR: 21.336%

simple rate of return: 72.13%

Explanation:

6,100,000 investment

contribution margin 3,000,000

fixed expense: 900,000

EBITA 2,100,000

We will calculate the NPV without the depreciation, as the depreciation is the distribution of the investment cost over the project life.

If we include the depreciation we will be counting the investment amount twice. Entirely at Time 0 and then subtracting on each cash inflow.

We will calculate the NPV at 20% as is the company's discount rate. Even if the current division returns are in 24% as the company accepts project which yields 20%.

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 2,100,000

time 5 years

rate 20% = 20/100 = 0.2

$2100000 \times \frac{1-(1+0.2)^{-5} }{0.2} = PV\\$

PV $6,280,285.49

NPV = PV of cash inflow - investment

6,280,285.49 - 6,100,000 = 180,285.49

the IRR:

The internal rate of return is the rate at which the NPV of a priject is zero.

We calculate this using excel formula IRR

or a financial calculator

it could also be done with trial and error using the PV tables.

I will explain you in Excel

FIrst, you write the inflow and outflow per year:

-6,100,000

2,100,000

then we write on another cell:

=IRR(

then, select the cells

and press enter

21.336%

the simple rate of return:

(total return - investment) / investment

(2,100,000 x 5 - 6,100,000) / 6,100,000 =

4,400,000 / 6,100,000 = 0.721311475 = 72.13%

7 0

3 years ago

Claudia, a senior accountant, likes to work on her own and hence does not come out as a team player. She takes up all the work t

MrMuchimi

Overmanaging is the most evident mistake Claudia made as a senior accountant.

8 0

4 years ago

Why did Krispy Kreme decide to manufacture all the donut mix and distribute it to the stores?

sveta [45]

Answer:

Option A

Explanation:

In simple words, Krispy Kreme Doughnuts, Inc. is an American doughnut company and coffeehouse chain owned by JAB Holding Company. Krispy Kreme was founded by Vernon Rudolph, who bought a yeast-raised recipe from a New Orleans chef, rented a building in 1937 in what is now historic Old Salem in Winston-Salem, North Carolina, and began selling to local grocery stores.

They make all their dough of the product by themselves so that the neutrality regarding their consistency remains intact thought the country,

5 0

4 years ago

List the reasons for the near collapse of government finances in france.

DochEvi [55]

Answer:

the future of our games are based on the

Explanation:

wgvsgshshhs you have any questions or concerns you yyyay you have any questions or concerns please visit the plug-in settings please log in to resume watching tv you are not the intended recipient you are not the intended recipient you are not the intended recipient you are not the intended recipient you are not the intended recipient you are not the intended recipient you are notikaussjshshshshgsgsggggggagsggggßdfçghgffcvvvbhhhbbhjjnnnbvczqertuopqwerttyuuiioppojjfdaasfghjklbuhhvbnnmmnvccffff you have any questions or concerns

4 0

3 years ago

________ are also called trade receivables. A : Income taxes refundable B : Other receivables C : Advances to employees D : Acco

frez [133]

D.Accounts Receivable are also called trade receivables.

This is because the account receivables were earned by practicing your trade or doing your business.

7 0

3 years ago

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