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QveST [7]
2 years ago
6

Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 –$218,917 –$16,419 1 25,700 5,985 2 5

3,000 8,370 3 58,000 13,931 4 420,000 8,655 Whichever project you choose, if any, you require a 6 percent return on your investment. What is the IRR (in %) for Project A?
Business
1 answer:
Kryger [21]2 years ago
5 0

Answer:

The IRR (in %) for Project A is 31%.

Explanation:

Let IRR be x%

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

218917 = 25700/1.0x + 53000/1.0x^2 + 58000/1.0x^3 + 420,000/1.0x^4

solving for x, we find:

x = 31%

Therefore, The IRR (in %) for Project A is 31%.

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The Tamarisk Heritage Centre (a not-for-profit organization providing language and arts and crafts programs for children) receiv
tatiyna

Answer:

48,939 patients

Explanation:

Breakeven quantity = fixed cost / price – variable cost per unit

$239,800 / ( $8.70 - $3.80) = 48,939 patients

4 0
1 year ago
Consider the P/E ratios of the following companies: Company A: 7.4 Company B: 11.3 Company C: 14.8 Company D: 9.1 Among these fo
matrenka [14]

Answer:

highest relative value highest dollar

Explanation:

The price to earning ratio is a financial metric used to value a company. it compares the price of a stock to the earnings of the stock. the higher the metric is, the higher the valuation of the firm

price to earning ratio (P / E) = market value per share / earnings

The higher the P/E, the higher the relative value of the firm relative to other firms. This is because investors are confident about the prospects of growth of the firm and are willing to pay a higher price for the stock of the company

Types of P/E ratio

1. trailing p/e - it is calculated by dividing current share price by the earnings per share for the past 12 months

2. forward p/e - it is calculated by dividing current share price by the estimated per share earnings for the next 12 months

5 0
1 year ago
Karlie Hastings is a writer (employee) for the Santa Fe Gazette and has an annual salary of $49,000. This year, she also realize
allochka39001 [22]

Answer:

$2,46500

Explanation:

Self-employment Earnings are profits made from carrying on a "trade or business" as a sole proprietor, an independent contractor, or some form of partnership. For a trade or business, to be considered self employment, does not have to be profitable, and it shouldn't be a full time thing but profit must be your motive.

To calculate your self employment income Subtract ordinary and necessary trade or business expenses from the gross income you derived from your trade or business.

Note that, the amount subject to self-employment tax is 92.35% of your net earnings.

Remember you pay income tax on your profits only, not your total income. Subtract your business expenses from your total income. This is the amount you will pay income tax on.

For Karlie

HI taxable Self employment earnings = $85,000

HI Self employment tax = ($85,000 × 0.29)

= $24650

Hence the portion of her earnings subjected to two parts of security tax is #2,46500.

5 0
1 year ago
Read 2 more answers
EZ Rental Car offers rental cars in an off-airport location near a major tourist destination in Florida Management would like to
trapecia [35]

Answer:

I used an excel spreadsheet to calculate this:

the least squares regression line:

y = a + bx

y = $2,937 + 3.96x

where y = total cash wash costs and x = rental returns

fixed costs = $2,937 per month

variable cost = $3.96 per car washed            

Download pdf
8 0
1 year ago
A regional transportation authority is interested in estimating the mean number of minutes working adults in the region spend co
scoray [572]

Answer:  To remove bias when estimating the proportion of working adults living in urban, suburban, and rural areas.

Explanation: In simple words, stratification refers to the process in which different sections of the society are grouped on the basis of one or more general factors.

In the given case, the company wants to estimate the minutes of working adults in the region and the region is grouped into urban, suburban and rural.

Thus, the random selection from different regions is done so that no bias takes place regarding the number of adult working in these three different areas.

8 0
2 years ago
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