Answer:
d. 13.31%
Explanation:
IRR is the rate at which NPV = 0
IRR 13.31%
Year 0 1 2 3
Cash flow stream -1100.000 450.000 470.000 490.000
Discounting factor 1.000 1.133 1.284 1.455
Discounted cash flows project -1100.000 397.136 366.060 336.804
NPV = Sum of discounted cash flows
NPV Project = 0.000
Where
Discounting factor = (1 + discount rate)^(Corresponding period in years)
Discounted Cashflow = Cash flow stream/discounting factor
IRR = 13.31%
Therefore, The project's IRR is 13.31%
Had to look for the options and here is my answer.
What happens when all of the capacity on a product line is being sold is that, the inventory from that line will be sold at HALF OF THE PRICE OR VALUE AS IT IS REFLECTED ON THE RECORDS OF ACCOUNTING DEPARTMENT. Hope this answer helps.
Answer:
d. $2,591.85
Explanation:
To solve we can use the present value formula defined by
where PV is present value, FV is future value, t is time and r is the interest rate , we can replace the values given in the question. Where 4000 is the future value, the time is t=6 years, and the interest rate is r=0.075, so we get
Answer:
Therefore, the Beta of Portfolio AC is 1.10
Explanation:
In order to calculate the Beta of Portfolio AC we would have to make the following calculation of the following formula according to the given data:
beta of Portfolio AC is given as=80%*1.0+20%*1.5
beta of Portfolio AC is given as=0.8+0.3
beta of Portfolio AC is given as=1.10
Therefore, the Beta of Portfolio AC is 1.10
Answer:
D) A credit to Other Financing Sources for $5,000
Explanation:
Since cash is received, you must record the $15,000 in the cash account. The accumulated depreciation account must be closed, and since accumulated depreciation has a credit balance, it is closed by debiting it. Equipment is an asset account with a debit balance and it also must be closed, ans you do that with a credit.
Other financing sources is used to record non-revenue items such as proceeds from loans, leases, sales of bonds or notes, insurance recoveries, etc., not the sale of assets.
