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Savatey [412]
2 years ago
15

Modern Federal Bank is setting up a brand-new branch. The cost of the project will be $1.2 million. The branch will create addit

ional cash flows of $235,000, $412,300, $665,000 and $875,000 over the next four years. The firm's cost of capital is 12 percent. What is the internal rate of return on this branch expansion
Business
1 answer:
KonstantinChe [14]2 years ago
3 0

Answer:

23.12%

Explanation:

Internal rate of return (IRR) is the rate at which the Net present value (NPV) of a project equals to zero.

Using a financial calculator and the CF function, input the following to find IRR;

Initial investment; CF0 = -1,200,000

Yr1 cashflow inflow ; C01 = 235,000

Yr2 cashflow inflow ; C02 = 412,300

Yr3 cashflow inflow ; C03 = 665,000

Yr4 cashflow inflow ; C04 = 875,000

Then key in IRR CPT = 23.119%

Therefore, the Internal rate of return this expansion is 23.12%

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bixtya [17]

Answer:

Alpha

Beta

Delta

Epsilon

Zeta

Explanation:

The customers list should be updated and sorted periodically to identify regular customers and those customers with big orders. There are many customers in the list and the list is not sorted according to alphabetical order. Those customers which account for more than or at least 5% of total trade are Alpha, Beta, Delta, Epsilon and Zeta. These are place first in list among other customers.

8 0
2 years ago
The first step in the decision-making process requires you to do what?
Semmy [17]

Answer:

think.....all you have to do is think XD

but in all honesty the answer is a determine your descision

4 0
2 years ago
Social Media, Inc. (SMI) has two services for users. Toot!, which connects tutors with students who are looking for tutoring ser
tekilochka [14]

Answer: See explanation

Explanation:

a. Predetermined overhead rate will be:

= Administrative costs/Number of users

= 739,500/25,500

= $29 per user

Administrative costs applied to Toot will be:

= Number of users x Predetermined overhead rate

= 8900 x 29

= $258100

Administrative costs applied to Tix will be:

= Number of users x Predetermined overhead rate

= 16600 x 29

= $481400

b. For Toot

Revenue: $1,450,000

Less: Engineering cost: $402,500

Less: Administrative cost: $258,100

Profit = $789400

For Tix:

Revenue: $1,200,000

Less: Engineering cost: $521,875

Less: Administrative cost: $481,400

Profit = $196725

5 0
2 years ago
A person who owned a bakery figured out that cookies were selling better than brownies. So, she took the resources that she was
lorasvet [3.4K]
This is possible because both products have the same allocation of raw materials, costs, and labor. <span> There wouldn't be any conflict with the change. </span><span> In business, this is called joint product. </span><span>This has been a business practicality measure for better costs planning and production. </span>
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A new machine with a purchase price of $109,000, with transportation costs of $12,000, installation costs of $5,000, and special
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<span>The machine would have a cost basis of $80,000 - $86,000. All business owners must gain profit from the products that they sell by ensuring that their capital will be returned to them. Putting such costing price gives the owner the capital gains as well as earning back the expenses that he has shelled out in order to purchase the machine to be sold in the market. <span>
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8 0
2 years ago
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