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DENIUS [597]
2 years ago
7

Modern Refurbishing Inc. is considering a project that has the following cash flow data. What is the project's IRR? Note that a

project's IRR can be less than the cost of capital (and even negative), in which case it will be rejected.Year 0 1 2 3 4Cash flows −$850 $300 $290 $280 $270a. 13.13%b. 14.44%c. 15.89%d. 17.48%e. 19.22%
Business
1 answer:
IgorLugansk [536]2 years ago
4 0

Answer:

a. 13.13%

Explanation:

Let irr be x%

At irr, present value of inflows = present value of outflows.

850 = 300/1.0x + 290/1.0x^2 + 280/1.0x^3 + 270/1.0x^4

     x = IRR

      = 13.13%

Therefore, The project's IRR is 13.13%

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Which of the following best describes how information sharing helps eliminate the bullwhip effect? a) Information sharing reduce
zepelin [54]

Information sharing reduces information lead time, enabling each organization to plan according to end demand and not according to the orders placed immediately downstream.

Explanation:

The Bullwhip effect is a trend of the distribution channel where estimates result of inefficiencies in the supply chain. Of reaction to fluctuations the market demand the inventory swings are growing, as the supply chain continues to grow.

The effect of the bullfight generally flows up the supply chain, starting from the retailer, wholesaler, dealer, producer and then the supplier of the raw materials.

This method does not include daily fluctuations to run level. Another way of reducing the bullwhip effect is by eliminating the delays along the supply chain. In general, the fluctuations in the supply chain can be reduced by 80% by cutting order to supply time by half in both real supply chains and supply chain simulations

4 0
2 years ago
Define the phrase "earnings management." under what conditions, if any, is earnings management acceptable? do auditors' responsi
12345 [234]
Earnings Management is the purposeful control of an organization's income through the abuse of bookkeeping strategies to pick up an advantage for the organization to the detriment of the individuals who depend on the monetary data. It is tangibly deceptive and distorts the money related soundness of the organization. 
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3 0
2 years ago
Adams Corporation's present capital structure, which is also its target capital structure is
kaheart [24]

Answer:

Task a:

The answer is $24,500.

Task b:

The answer is 17%

Explanation:

<h2>Task a:</h2><h3>What is the maximum amount of new capital that can be raised at the LOWEST  component cost of EQUITY?</h3><h3>Solution:</h3>

We already know the following:

Projected net income = $21,000

Payout ratio = 30%

Retention ratio = 70%

Debt share = 40%

Equity share = 60%

Maximum amount of capital to be raised at the lowest component cost of equity = Projected net income ×\frac{Retention ratio}{Equity share}

= $21,000 × \frac{0.70}{0.60}

= $24,500

<h3>Answer:</h3>

The maximum amount of new capital that can be raised at the lowest component of equity is $24,500.

<h2>Task b:</h2><h3>What is the component cost of equity by selling new common stock?</h3><h3>Solution:</h3>

k(e) (component cost of external equity) = [Dividend (D0)(1 + growth) / stock price(1 - flotation cost)] + growth

Formula:

k(e) = \frac{Do(1+g)}{P(1-0.20)} + 0.05

Where

Do = $2.00

G = 0.05

P = $21/88

= ($2.00(1 + 0.05) / $21.88(1-.20)) + 0.05

= ($2.10/$21.88(1-.20)) + 0.05

= ($2.10/$21.88(0.80) + 0.05

= 0.17 or 17%

<h3>Answer: </h3>

The component cost of equity by selling new common stock = 17%

5 0
2 years ago
Donna wants to open her own business. She decides that she needs to make a strategy for determining what product she should sell
Tasya [4]

Answer:

Market survey

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The best marketing strategy to determine this need/want is called Market survey. this survey can be carried out by creating a one page questionnaire about her intended product and post/send it to the relevant audience for appropriate feedback and also to professionals in her intended product. the feedback she gets from the questionnaire will help inform her on the best product to sell.

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2 years ago
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