Answer and Explanation:
The computation of the MIRR is shown below:
But before that terminal cash flow required to calculate
<u>
Year Cash Flows FV Factor Formula Terminal Value
</u>
<u> (Cash Flow × FV Factor) </u>
0 ($1,000)
1 $450 1.21 (1 +10%)^(2) $545
2 $450 1.1 (1 + 10%)^(1) $495
3 $450 1 1 $450
Terminal Cash Flow $1,490
now the MIRR is
![MIRR = \sqrt[n]{\frac{terminal\ cash\ flow}{initial\ investment} } - 1\\\\= \sqrt[3]{\frac{\$1,490}{\$1,000} } - 1](https://tex.z-dn.net/?f=MIRR%20%3D%20%5Csqrt%5Bn%5D%7B%5Cfrac%7Bterminal%5C%20cash%5C%20flow%7D%7Binitial%5C%20investment%7D%20%7D%20-%201%5C%5C%5C%5C%3D%20%5Csqrt%5B3%5D%7B%5Cfrac%7B%5C%241%2C490%7D%7B%5C%241%2C000%7D%20%7D%20-%201)
= 14.22%
As it can be seen that the MIRR is more than the WACC so the project should be accepted.
Answer:
higher than net income computed under variable costing when units produced are greater than units sold
Explanation:
Absorption costing and variable costing techniques are used to compute the accounting cost of various operation. The calculation procedures of both the techniques are different; that is why the results are different. The net income under absorption costing is higher because it takes into account the indirect expenses and indirect costs. Likewise, absorption costing technique also includes manufacturing or overhead cost.
Answer: 1. statement d
2. statement d
Explanation: This can be explained as follows :-
1.Government intervention should be done on those sectors that results in maximization of wealth. Private sector is the back bone of every economy's free market, thus, protecting private property is the correct option.
.
2. Issuing patent right to the inventor will result in monopoly by that particular producer and that too of a necessary commodity hence option d is correct.
Answer:
A. Adjust the Minimum option to Fixed and change to 0.
Explanation:
Took the course
