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Stolb23 [73]
3 years ago
6

Kanye Company is evaluating the purchase of a rebuilt spot-welding machine to be used in the manufacture of a new product. The m

achine will cost $165,000, has an estimated useful life of 7 years, a salvage value of zero, and will increase net annual cash flows by $31,692. Click here to view PV table. What is its approximate internal rate of return? (Round answer to O decimal place, e.g. 13%.) Internal rate of return %
Business
1 answer:
nevsk [136]3 years ago
6 0

Answer:

8%

Explanation:

The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.

The IRR can be calculated using a financial calculator.

Cash flow in year zero = $-165,000

Cash flow each year from year one to seven = $31,692

IRR = 8%

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

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If a buyer defaulted some time ago on a written contract to purchase a seller's real estate, the seller can still sue for damage
Alinara [238K]

Answer:

statute of limitations

Explanation:

If the buyer defaulted some time ago on a written contract to purchase a seller's real estate, the seller can still sue for damages if he is not prohibited from doing so by the

statute of limitations

7 0
2 years ago
A discount bond is also called a ________ because the owner does not receive periodic payments.
a_sh-v [17]

A discount bond is also called a <u>zero coupon bond</u> because the owner does not receive periodic payments.

A discount bond is a bond that is issued for much less than its par—or face—fee. discount bonds can also be a bond currently trading for less than its face cost inside the secondary market. A bond is considered a deep-cut price bond if it's far bought at a substantially decrease price than the par fee, normally at 20% or more.

A zero-coupon bond is a bond that pays no interest and trades at a reduction to its face price. It is also known as a natural cut price bond or deep cut price bond. U.S. Treasury payments are an example of a 0-coupon bond.

Coupons are the promised hobby payments of a bond, paid periodically till the adulthood date of the bond. The coupon rate determines the quantity of every coupon fee of a bond. The coupon rate, expressed as an APR, is about by using the issuer and said on the bond certificate.

Learn more about discount bonds here brainly.com/question/16748047

#SPJ4

3 0
1 year ago
Convert 32.7 kilograms to centigrams DUE IN 10 MIN
ryzh [129]

Answer:

A IS THE ANSWER

Explanation:

TO CONVERT KG TO CG YOU MULTIPLY YOUR NUMBER BY 100000 SO 32.7 x 100000 = 3,270,000 cg

8 0
2 years ago
All other factors being equal, what would the premium be like in a survivorship life policy as compared to the premium in a join
Marizza181 [45]

Answer: The correct answer is "B. lower".

Explanation: The insurance premium is one of the central elements of the contract since it is the price that the insured pays for the coverage he receives. Its value will depend on the type of risk insured and is always fixed in advance by the insurance company. It must be sufficient for the insurer to face the insured risk, calculating that not all the insured will need the coverage, that is, statistically, there is a probability that it will happen or not.

The premium is lower in a survivorship life policy as compared to the premium in a joint life policy.

3 0
3 years ago
Assume the spot Swiss franc is $0.7000 and the six-month forward rate is $0.6950. What is the minimum price that a six-month Ame
Rama09 [41]

Answer:

2 cents

Explanation:

The spot price = $0.7000 = 70 cents, The forward rate = $0.6950 = 69.5 cents and the call option with striking price = $0.6800 = 68.00 cents

The annualized six month rate = 3 1/2 % = 3.5 %, therefore the rate = r/n, where n is the number of period per year = 2. Therefore r/n = 3.5% / 2 = 0.035 / 2 = 0.0175

The minimum price = Maximum (spot price - striking price, (forward rate - striking price) / (1 + 0.0175), 0) = Maximum(70 - 68, (69.5 - 68)/ 0.0175, 0)

Minimum price = Maximum (2 , 1.47, 0) = 2 cents

4 0
3 years ago
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