HOW TO EASILY BUY A PASSPORT ONLINE.

Wildhorse, Inc., a resort management company, is refurbishing one of its hotels at a cost of $6,336,382. Management expects that

Xelga [282]

Answer and Explanation:

The computation of the IRR is shown below:

<u>Year Particulars Amount (in $) </u>

0 Initial cost -6,336,382

1 Year 1 cash inflows 1,460,000

2 Year 2 cash inflows 1,460,000

3 Year 3 cash inflows 1,460,000

4 year 4 cash inflows 1,460000

5 Year 5 cash inflows 1,460,000

6 Year 6 cash inflows 1,460,000

IRR 10.12%

Perform the IRR formula i.e.

= IRR() in excel

Now the net present value is

= Present value of cash inflows - initial investment

= ($1,460,000 × 4.1114) - $6,336,382

= $6,002,644 - $6,336,382

= -$333,738

The 4.1114 is the PVIFA factor of 6 years at 12%

hence, the Wildhorse should not go ahead with the project

5 0

2 years ago

The operating revenues of the three largest business segments for Time Warner, Inc., for a recent year follow. Each segment incl

Kisachek [45]

Answer:

Time Warner, Inc.

a.

Turner Home Box Office Warner Bros. Total

Segment Revenues

(in millions) $21,700 $22,200 $80,600 $124,500

Variable costs 4,774 10,434 25,792 41,000

Contribution margin $16,926 $11,766 $54,808 $83,500

Contribution ratio 78% (100 - 22) 53% (100 -47) 68% (100 -32) 67%

b. Certainly, Turnover and Warner Bros. are more profitable businesses than Home Box Office in terms of total contribution margin (dollars) and contribution margin ratio.

Explanation:

a) Data and Calculations:

Segment Revenues

(in millions)

Turner (cable networks and digital media) $21,700

Home Box Office (pay television) 22,200

Warner Bros. (films, television, and videos) 80,600

Assume that the variable costs as a percent of sales for each segment are as follows:

Turner 22%

Home Box Office 47%

Warner Bros. 32%

b) The contribution margin ratio for the three segments can easily be determined by subtracting the variable costs percentages from 100 for each segment instead of doing more computations (Contribution margin/Sales Revenue * 100). But the results are the same for either method.

6 0

2 years ago

Which banker would a software company most likely visit for help to raise large amounts of capital to acquire, or buy out anothe

N76 [4]

It should be noted that the banker that would be visited to raise large amounts of capital is an investment banker.

<h3>Who is an investment banker?</h3>

It can be noted that an investment banker simply means a person that is involved in helping to raise capital for large corporations.

In this case, the banker that a software company most likely visit for help to raise large amounts of capital to acquire, or buy out another company is an investment banker.

Learn more on investment banking on:

brainly.com/question/12301548

5 0

2 years ago

Company X was expected to have earnings per share of $0.52 for the upcoming quarter. On the day of the results, the company repo

inn [45]

Answer:

Rise in stock price.

Explanation:

In general, the stock price has increased because the expected earning was $0.52 per share but the actual earnings were $0.83. therefore, we can say that stock prices have increased. moreover, there are other factors that may affect the stock price. But in this case. A positive surprise in the earnings per share results in stock price going up.

3 0

3 years ago

Melanie has a choice of driving or flying from Durham, North Carolina to Knoxville, Tennessee for a one-day business trip. If sh

Elis [28]

Answer:

Correct option is (b)

Explanation:

Time available for work if Melanie chooses to travel by air = 7 hours

Income per hour = $40

Total income earned if chooses to travel by air = 40 × 7 = $280

Time available for work if Melanie chooses to drive = 4 hours

Total income earned if chooses to drive = 40 × 4 = $160

Price differential = 280 - 160 = $120

As a rational decision maker, Melanie will choose to fly over drive only if her price differential is below $120. She will choose to drive if price differential is above $120.

4 0

2 years ago