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ycow [4]
3 years ago
8

DYI Construction Co. is considering a new inventory system that will cost $750,000. The system is expected to generate positive

cash flows over the next four years in the amounts of $350,000 in year one, $325,000 in year two, $150,000 in year three, and $180,000 in year four. DYI's required rate of return is 8%.
Required:
What is the modified internal rate of return of this project?
Business
1 answer:
shutvik [7]3 years ago
5 0
The modefied internal rate of return is 35747 of the project
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Question 6
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Answer:

The answer is,

O To raise money for the corporation.

Explanation:

Issuing share is a method of financing for a corporation. Company can borrow money from external parties such as banks or issue debentures as well. However, the cost of such borrowings tends to be higher than issuing equity stocks and there are many legal necessities as well in such a process.

6 0
3 years ago
Sunland Company acquires land for $77000 cash. Additional costs are as follows.
Inga [223]

Answer:

$91,580

Explanation:

The cost of an asset includes all cos incurred in making the asset available for use. These includes the cost of the item net all discounts, sales tax, freight cost etc.

As long as the cost is necessary for the asset to be available for use, such cost will be capitalized with the cost of the item of asset. Other cost such as maintenance, insurance costs are expensed and not considered as a part of the cost of the asset.

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5 0
4 years ago
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When herman asks "any more recent employment history? eliot has been out of business for 20 years," is he violating the age disc
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