Answer:
IRR = 14.96%
The project should be rejected, because the calculated internal rate of return falls short of the required return (14.96% < 16%).
Explanation:
The internal rate of return (IRR) is an essential calculation in capital budgeting for assessing potential investment profitability. The IRR rule guides whether to pursue a project or investment, stipulating that if the IRR exceeds the minimum required return, the project should be accepted. Conversely, if it’s lower than the cost of capital or the requisite return, the project should be turned down.
The formula used is as follows:
$0 = (initial investment x -1) + CF1 / (1 + IRR) ^ 1 + CF2 / (1 + IRR) ^ 2 +... + CFX / (1 + IRR) ^ X
Initial Investment = Total initial investment costs year x-1
CFx = Cash Flow during period X
IRR = Internal rate of return
Due to the nature of the IRR formula, it cannot be computed analytically; it must be derived through trial and error or via specialized software for IRR calculation.
In this instance:
IRR = -27200 + 11200 / (1 + IRR) ^ 1 + 14200 / (1 + IRR) ^ 2 + 10200 / (1 + IRR) ^ 3
IRR = 14.96%
The company should not proceed with the investment, as the calculated IRR is less than what is required (14.96% < 16%).
Response:
B
Hope this information is useful
Response:
The yearly return on the investment in this sculpture is -4.46%.
Details:
Let PV represent the investment amount, while FV is the value after t periods.
FV = PV(1+r)^t
(1+r)^t = FV/PV
1 + r = (FV/PV)^(1/t)
r = (FV/PV)^(1/t) - 1
Here, t is the duration from 1999 to 2003, so t = 2003 - 1999 = 4 years.
FV is $10,311,500.
PV is $12,377,500.
r = ($10,311,500/$12,377,500)^(1/4) - 1
r = -0.0446
Consequently, his yearly rate of return on the sculpture is -4.46%.
Answer:
Explanation:
a. Low Balance: This alert can be configured based on a specific threshold you choose. It notifies you when your bank account balance reaches the limit you established, such as $50, $500, or $1000, thus helping you avoid overspending.
b. Mobile Deposit. Each time you deposit a check using your smartphone, you receive a text message. This serves as confirmation for submitting the check. Additionally, it offers convenience by notifying you when the check has been cleared and funds deposited in your account.
c. Unusual Activity. You’ll receive this alert if the bank detects any atypical activity, which may indicate potential fraud. For example, it could occur when transactions are made that don't align with your regular spending habits or if transactions happen outside your typical geographical area.
2.
Among these alerts, the most crucial one would be Unusual Activity since it poses a greater risk compared to the others.
Answer:
A) 10,000 units = 15.75 dollars each
15,000 units = 10.5 dollars each.
B) 10,000 units = 1,260,000 in variable costs
15,000 units = 1,875,000 in variable costs
Explanation:
To determine the first figure, simply divide the fixed costs, which include operational and administrative expenses from the production of goods, by the total units produced, computed as follows:
157,500/10,000= 15.75
157,500/15,000=10.5
To calculate the difference regarding variable costing, multiply the per-unit cost by the total units expected to be produced:
126x10,000=1,260,000
126x15,000=1,875,000
