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Stells [14]
3 years ago
7

Consider the investment project with the following net cash flows. What would be the value of X if the project’s IRR is 25%? End

of year (n) Net Cash Flow Year 0 -$12,000 Year 1 $2,500 Year 2 $5,500 Year 3 X Year 4 X
Business
1 answer:
seropon [69]3 years ago
3 0

Answer:

X=$7031.25

Explanation:

The value of the X for the current investment project shall be determined through the following mentioned equation:

Net present value=Present value of all the cash flows associated with the investment project

AT IRR, Net present value=0

0=-$12,000(1+25%)^0+$2,500(1+25%)^-1+$5,500(1+25%)^-2+X(1+25%)^-3+X(1+25%)^-4

0= -$12,000+$2,000+$3,520+0.512X+0.4096X

0= -$6480+0.9216X

$6480=0.9216X

X=$7031.25

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Goldin Corporation currently pays its salesperson a flat salary of $5,000 per month and is considering paying him $20 per unit i
Naddik [55]

Answer:

The net operating income will c. increase by $7,000

Explanation:

The formula to calculate net operating income  is =

Gross income - Operating expenses

If  Sales are equal to 200 units  and the payment for a salesperson is

a flat salary of $5,000

Gross income = 200  * $80 = $16,000

and

Operating expenses = $5,000

so

Net operating income = $16,000  - $5,000 = $11,000

If  we rise the Sales to 300 units then the payment for the salesperson will be 20$ * 300 = $6,000.

Gross income = 300  * $80 = $24,000

and

Operating expenses = $6,000

so

Net operating income = $24,000 - $6,000 = $18,000

$18,000 -  $11,000 = $7,000

6 0
3 years ago
Failing to respond to the needs of internal customers will diminish the confidence these users have in purchasing, and they may
Solnce55 [7]

Answer:

The correct answer is Maverick buying.

Explanation:

Maverick, is a wayward, a dissident, a rebel, someone who refuses to abide by the rules or resists joining a group. The term originates from Samuel A. Maverick (1803-1870), a Texas rancher, who refused to mark his cattle.

The "maverick buying", refers to purchases out of contract or channels established by an organization. For example, the Corporate Supply department negotiates a competitive price for certain particular models of laptops with a distributor. Days later, someone from the Human Resources department requests the purchase of a much more expensive model, for which a discount has not been negotiated.

Another example: traveling in an airline and staying in a hotel other than those with which the company has signed agreements.

The impact of bypassing the preferred purchasing channels and systems can vary from operational inefficiency, to missing out on the advantages of corporate contract negotiation, large fines and even jail time.

4 0
3 years ago
Select all the decision-makers that experience scarcity.
g100num [7]
Here are the answers of the given question above. The decision-makers that <span>experience scarcity are the following: governments, companies, and individuals, except for capital goods since capital goods is not a decision-maker. Hope this is the answer that you are looking for. Have a great day!</span>
3 0
3 years ago
Jane and Joe made two investments of $25,000 and $40,000 with different investors that yielded a combined rate of return of 10%
OLga [1]

Answer:

10.625%

Explanation:

The combined rate of return for two investments can be calculated using the below mentioned formula:

Combined interest=[(interest rate of first investment*first investment+interest rate of second investment*second investment)/(First investment+Second investment)]

In the given question

Combined interest=10%

Interest rate of first investment=9%

First investment=$25,000

Interest rate of second investment=?

Second investment=$40,000

10%=[(9%*25,000+Interest rate of second investment*$40,000)/(25,000+40,000)]

10%=(2250+Interest rate of second investment*$40,000)/65,000

10%*65,000=2250+Interest rate of second investment*$40,000

6500-2250=Interest rate of second investment*$40,000

4,250=Interest rate of second investment*$40,000

Interest rate of second investment=10.625%

5 0
3 years ago
Office with demarcation is known as what​
Katyanochek1 [597]
A a boundary point or network boundary point, a demarcation point is the physical point at which the public network of a telecommunications company ends and the private network of a customer begins.
3 0
3 years ago
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