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Sonbull [250]
2 years ago
5

As the capital budgeting director for Chapel Hill Coffins Inc., you are evaluating construction of a new plant. The plant has a

net cost of $5 million in Year 0 (today), and it will provide net cash inflows of $1 million at the end of Year 1, $1.5 million at the end of Year 2, and $2 million at the end of Years 3 through 5. Within what range is the plant's IRR

Business
1 answer:
ValentinkaMS [17]2 years ago
5 0

Answer:

18.37%

Explanation:

The internal rate of return is the return at which the net present value comes to zero

Here the net present value is the value at which the present cash inflows after discounting factor is exceeded then the initial investment. If this thing happens then the project would be accepted otherwise it would be rejected

The computation of the range of the plant IRR is to be shown in the attachment below.

Please find the attachmentHence, the internal rate of return is 18.37%

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A manufacturing division has an average of $1,800,000 invested in assets and earned income of $720,000. The division's return on
Romashka [77]

Answer:

ROI = 0.4

Explanation:

To find the answer, we use the following formula:

Return on Investment = Profit / Investment

Now, we simply plug the amounts into the formula:

Return on Investment = $720,000 / $1,800,000

                                    = 0.4

5 0
2 years ago
Suppose the following information (in thousands of dollars) is available for H.J. Heinz Company—famous for ketchup and other fin
Katena32 [7]

Answer:

Explanation:

The classified balance sheet comprises of the assets, liabilities, and stockholder equity.  With the help of the accounting equation, the total assets are equal to the total liabilities including stockholder's equity.

The assets are further divided into current assets, fixed assets, and intangible assets. Similarly, the liabilities are also further divided but they do not have any intangible liabilities.

The preparation of the partial balance sheet is presented in the spreadsheet. Kindly find the attachment below:

4 0
2 years ago
Assume a monopolistically competitive firm faces the following situation: P $20, output 13,000 units, MC 16 ATC $22, AVC = $15,
anygoal [31]

Answer:

4. The firm is minimizing its losses OR maximizing its Profit

Explanation:

Assume a monopolistically competitive firm faces the following situation:

P $20, output 13,000 units, MC 16 ATC $22, AVC = $15, and MR = $16 which statement BEST describes the firm's situation?

The statement that best describes the firm situation is that it is maximizing its profit or minimizing its losses because profit is maximized where Marginal cost is equal to marginal revenue, and that is the case of this firm. MC=MR at $16.

In conclusion, since the firm is maximizing profit, it needs not change anything but to keep producing at this level of output and price.

7 0
2 years ago
Your grandfather wants to establish a scholarship in his father’s name at a local university and has stipulated that you will ad
Paul [167]

Answer:

the answer for the first question is $166667.

the answer for the second question is $210526

the answer for the third question is An inverse.

Explanation:

given information that i will invest in a $10000 scholarship that will pay forever.

the interest rate charged is 6.00% per annum therefore this is a perpetuity present value problem where there is streams of income forever therefore we use the formula :

Pv of perpetuity= Cf/r

where Cr is the cash flows payed by the single investment forever in this case $10000 then r is the interest rate of the investment amount which is 6% in this case.

Pv of Perpetuity= $10000/6%

                           =$166667 therefore i must invest this amount to get the scholarship running with streams of $10000 forever.

in the second problem if now the interest rate is changed from 6% to 4.75% then the amount to be invested would be :

Pv of perpetuity = $10000/4.75%

                              =$210526 therefore this is the amount to be invested for a forever $10000 stream of incomes for a scholarship.

the relationship is indirect cause as the interest rate decreases the present value of the perpetuity that must be invested increases.

3 0
2 years ago
Rather than acquire an existing textile manufacturer in Jakarta, FauxFabric Inc. chose to establish new operations in Indonesia.
Arisa [49]

Answer: (A) Greenfield investment

Explanation:

 The greenfield investment is one of the type of FDI ( Foreign direct investment) that helps in constructing the various types of new production facilities in an organization.

The main objective of the greenfield investment process is to making the manage the investor control process and also form different types of opportunities for managing the partnerships in the market.

According to the given question, the Greenfield investment process is helps in establishing the various types of new operation in Indonesia and it is the form of foreign direct investment.

 Therefore, Option (A) is correct answer.

7 0
2 years ago
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