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scoray [572]
2 years ago
9

A firm evaluates all of its projects by applying the IRR rule. The current proposed project has cash flows of −$37,048, $16,850,

$15,700, and $19,300 for Years 0 to 3, respectively. The required return is 18 percent. What is the project IRR? Should the project be accepted or rejected?
Business
1 answer:
Darya [45]2 years ago
5 0

Answer:

18.42%

Explanation:

IRR is the discount rate that equates the after tax cash flows from an investment to the amount invested.

IRR can be calculated using a financial calculator:

Cash flow in year 0 = −$37,048

Cash flow in year 1= $16,850

Cash flow in year 2 = $15,700

Cash flow in year 3 = $19,300

IRR = 18.42%

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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The 6.3 percent, semi-annual coupon bonds of PE Engineers mature in 13 years and have a price of $992. These bonds have a curren
ludmilkaskok [199]

Answer:

6.35, 6.39 and 6.49

Explanation:

6.3% = 0.063

yield = 0.063 ×$1,000/ 0.992 yield = 0.063 ×$1,000)/ 0.992 ×$1,000)

Current yield = 0.0635, or 6.35 percent PV = $992 = 0.063× $1,000 / 2) ×{(1 - {1 / [1 + (r / 2)]26}) / (r/ 2)} + $1,000 / [1 + (r / 2)]26 r = .0639, or 6.39 percent EAR = [1 + .0639 / 2)]2 - 1 EAR = .0649, or 6.49

7 0
2 years ago
Read 2 more answers
Today we see a very low unemployment rate with a controlled and acceptable inflation rate. Which of the following statements cou
serious [3.7K]

Answer:

A. All of these 3 other possible answers that are listed here are true reasons.

Explanation:

If we are to use wage the rate of change in wages or inflation, as a proxy for inflation in the economy, when there is unemployment, the number of persons searching for work is significantly greater than the number of jobs available for the people who are unemployed. What we mean is, the supply of labor is greater than the demand for it.

With the availability of many workers, there's little need for employers to "bid" for the services of employees by paying them good wages.

7 0
2 years ago
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Mini, Inc., earns pretax book net income of $1,900,000 in 2019. Mini deducted $196,400 in bad debt expense for book purposes. Th
Xelga [282]

Answer:

a. $10,311

b. $0

c. $9,546.95

Explanation:

a. Deferred tax asset account:

= Deferred tax asset 2019 + Deferred tax asset 2020

Deferred tax asset 2019 = Bad debt for book purposes * tax rate

= 196,400 * 21%

= $41,244

Deferred tax asset 2020 = Bad debt for tax purposes * tax rate

= 147,300 * 21%

= -$30,933

Deferred tax account balance = 41,244 + (- 30,933)

= $10,311

b. Deferred tax liability account = $0

From the given details there are no tax liabilities.

c. Cost to Mini;

= Deferred tax asset * Present value factor

= 10,311 * 0.9259

= $9,546.95

4 0
2 years ago
Job-Order Costing and Decision Making [LO2-1, LO2-2, LO2-3]
Anastaziya [24]

Answer:

a. $21 per machine hours

b. $4,855          

Explanation:

a. The computation of the plantwide predetermined overhead rate is shown below:

Plantwide predetermined overhead rate is

= Variable overhead cost rate per machine hour + Fixed overhead cost rate per machine hour

= $2 + (fixed manufacturing overhead cost ÷ Estimated machine hours)

= $2 + ($4,275,000 ÷  225,000 machine hours)

= $2 + $19

= $21 per machine hour

b. Now the total manufacturing cost assigned is

Particulars                                      Amount

Direct material                               $1,702        

Direct labor                                $1,221

Variable manufacturing overhead $168

(84 × $2)

Total variable cost                        $3,091

Add:

Fixed manufacturing overhead

(84 × $21)                                $1,764

Total manufacturing cost assigned

to Job P90                                    $4,855          

7 0
2 years ago
Draw a labor supply curve and a labor demand curve. Label them LS0 and LD0. Draw a point the equilibrium quantity of labor and t
Kaylis [27]

Answer:

employment increases and a given amount of employment produced more real GDP.

Explanation:

Labor productivity is the measurement of the hourly output of a country's economy. This tells us the amount of GDP that is produced by an hour of labor. On the other hand, GDP (Gross Domestic Product) is the monetary value of all goods and services within a country in a specific period of time. Therefore, when we have an increase in labor productivity, we also have an increase in potential GDP because employment increases and a given amount of employment produces more real GDP.

6 0
2 years ago
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