Answer:
IRR = 8%
Don't accept the project
Explanation:
The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.
IRR can be calculated using a financial calculator:
Cash flow in year 0 = -9,187,846.67
Cash flow each year from year 1 to 11 = 1287000
IRR = 8%
Because the IRR is less than the hurdle rate, the project shouldn't be accepted.
To find the IRR using a financial calacutor:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
I hope my answer helps you
Answer:
The correct answer is: Synergy.
Explanation:
The term synergy means cooperation and its most frequent use was, until now, in the field of medicine, where the synergistic effect of two organs is discussed as the improvement that is produced by the fact that these organs work together.
Applied to the business world, synergy is the production of additional effects that results from the joint work of two or more organizations, taking into account that those effects would not occur if those organizations acted separately.
Synergy in operational activities are those that apply to a function or resource in which the consequences of that collaboration are manifested. It can be synergies in marketing, such as those created when using sales channels, after-sales services or even common logistics; synergies in supplies, which generate benefits in purchase prices or payment conditions for volume purchases or transformation synergies or other operational activities, share production or management schedules or controls, etc.
Answer:
Check the answers below
Explanation:
- The per instrument cost of the bank is $0.25. Assuming uniform cheque value, the 24 million remittances across 10000 cheque will mean per cheque value of 2400. If this amount can be invested at 8% p.a., then daily investment income will be approx = 2400 * 8% /365 = $ 0.526
- Now for the company to jus about cover the cost of the cheque processing, the time should reduce by (assuming fractional time in days is possible) 0.25/0.526 = 0.48 days
- Now if the interest that can be earned reduces to 4%, the average daily interest will also reduce to $0.263. At this level, the time required to cover the cost should reduce by 0.95 days
The difference is simply because the opportunity cost in terms of alternate usage of funds has decreased for the company.
Answer and Explanation:
The journal entry is shown below:
Cash Dr $98,800
Finance charge Dr ($120,000 × 1%) $1,200
To Liability - Financing Arrangement $100,000
(being receipts of cash is recorded)
Here cash and finance charge is debited as it increased the assets and expenses and liability is credited as it also increased the liabilities. Also, the cash & expenses contains normal debit balance and liabilities contains normal credit balance
Answer:If the terms of a contract are ambiguous a court may use extrinsic
Explanation:
The ambiguity of the terms of the contract will force the court to look beyond the express terms of the contract and further looks into the extrinsic terms to be able to take a position on the contract.
