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iren2701 [21]
2 years ago
8

Strange Manufacturing Company is purchasing a production facility at a cost of $21 million. The firm expects the project to gene

rate annual cash flows of $7 million over the next five years. Its cost of capital is 18 percent. What is the internal rate of return on this project? (A) 17%(B) 18%(C) 19%(D) 20%
Business
1 answer:
n200080 [17]2 years ago
5 0
It would be choice B 18%.
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Please write out, step-by-step, how you obtained the correct answer for this math problem.
Neko [114]

Answer:

The correct answer is "$7,630".

Explanation:

Assuming there are four weeks in a month, then

Joe's income will be:

= 23.50\times 40\times 4

= 3,760 ($)

Zola's income will be:

= 21.50\times (40+5)\times 4

= 21.50\times 45\times 4

= 3,870 ($)

hence,

The combined gross monthly income will be:

= Jose's \ income+Zola's \ income

= 3,760+3,870

= 7,630 ($)

3 0
2 years ago
Harrelson Company manufactures pizza sauce through two production departments: Cooking and Canning. In each process, materials a
Marina CMI [18]

Answer:

Both the department entries are posted.

Explanation:

Harrelson Company

General Journal

Date             Account Titles and Explanation      Debit          Credit

April 30          Work In Process    Cooking           22,800        

                           Work In Process Canning           10,900

                            Direct Materials Inventory                            33700

(To record materials used)

30                      Work In Process  Cooking         9,430  

                            Work In Process Canning         7,230

                               Direct Labor                                             16,660

(To assign factory labor to production)

30                         Work In Process     Cooking     33,800

                               Work In Process Canning      28,100

                                  Manufacturing Overhead                     61900

(To assign overhead to production)

30                           Work In Process Canning         55,900

                                       Work In Process  Cooking                  55,900

(To record costs transferred in)  Assuming Canning is the second department and cooking is the first. So costs are transferred from the first to the second department.

8 0
2 years ago
The manager of a major retail store has taken a random sample of 25 customers. The average sale was $52.50. The population stand
Anna35 [415]

Answer:P value = 1 - 0.9793 = 0.0207

Explanation:

we can use Z value and normal distribution to find P value. P value is the area of beyond the value of Z value

sample mean (x.bar) = $52.20

Population mean (U) = $50

Sample Standard deviation (Sd) =$ 6.10

sample (n) = 25

Z =\frac{(x.bar - U)}{Sd/\sqrt{n} } =\frac{52.50 - 50}{6.10/\sqrt{25} }

Z = 2.50/1.22 = 2.049280328 = 2.049

area (normal distribution table) = 0.9793

P value = 1 - 0.9793 = 0.0207

7 0
2 years ago
To purchase a used automobile, you borrow $10,000 from Loan Shark Enterprises. They tell you the interest rate is 1% per month f
neonofarm [45]

Answer:

The actual APR (annual percentage rate) that you are paying is 12.69%.

Explanation:

The actual annual percentage rate (APR) can be calculated using the Annual Percentage Rate (APR) formula as

follows:

APR = (((Fees + Interest accrued) / Principal / n) * Number of months in a year) * 100 ……………… (1)

Where;

APR = ?

Fees = Credit investigation charged = $200

Principal = Amount borrowed = $10,000

Total accrued amount = Principal * (1 + (Monthly interest rate * Number of months of loan tenure)) = $10,000 * (1 + (1% * 35)) = $13,500

Interest accrued = Total accrued amount - Principal = $13,500 - $10,000 =$3,500

n = Number of months of loan term = 35

Number of months in a year = 12

Substituting the values into equation (1), we have:

APR = (((200 + 3500) / 10000 / 35) * 12) * 100

APR = 12.69%

Therefore, the actual APR (annual percentage rate) that you are paying is 12.69%.

3 0
1 year ago
When the supply of bubble gum increases while the demand for bubble gum decreases, the equilibrium ________ of bubble gum will d
Nadusha1986 [10]

Answer:

The correct answer is option b.

Explanation:

The equilibrium price and quantity of a product are determined through the interaction of demand and supply curves of the product.  

An increase in the supply will cause the supply curve to shift to the right. While a decrease in the demand will cause the demand curve to move to the left.  

This will cause the price of the product to decline. The change in the quantity, on the other hand, depends on the magnitude of change in the demand and supply.

4 0
2 years ago
Read 2 more answers
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