Homework Answers
By calculations the IRR is 14.55% approx and using a financial calculator we find the IRR to be 14.556%.
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12) What is the IRR of the following cashflows? a. ($15,000) b. $0.00 C. $10,000 ($2,000)...
5-73 Given the following data, use present worth analysis to find the best alternative, A, B, or C $10,000 15,000...
5-73 Given the following data, use present worth analysis to find the best alternative, A, B, or C $10,000 15,000 $12,000 Initial cost Annual benefit 6,000 10,000 5,000 Salvage value 1,0002,000 3,000 Useful life 4 years 3 years 2 years Use an analysis period of 12 years and 15% interest.
5-73 Given the following data, use present worth analysis to find the best alternative, A, B, or C $10,000 15,000 $12,000 Initial cost Annual benefit 6,000 10,000 5,000 Salvage value...
Q4. Consider the following three projects cash flow Model A B C Purchase Cost $10,000 $15,000...
Q4. Consider the following three projects cash flow Model A B C Purchase Cost $10,000 $15,000 $20,000 Annual Operation Cost $1,000 $800 $1,200 Annual Revenue $2,800 2,900 $4,000 Salvage Value $1, 000 2,000 3000 Useful Life 10 Years 10 Year 10Years a- Calculate the Internal Rate of Return (IRR) for each cash flow?(5 marks) b- If MARR is 10%; which project should be selected? (5 marks) Please dont use excel for solving
10. Two investments have the same expected returns: Year BTCF1 BTCF2 1 $5,000 $2,000 2 10,000...
10. Two investments have the same expected returns: Year BTCF1 BTCF2 1 $5,000 $2,000 2 10,000 $4,000 3 12,000 $1,000 4 15,000 $5,000 Sale $120,000 $180,000 Investment 1 requires an out lay of $110,000 and investment 2 requires an outlay of $120,000. a. What is the before tax IRR on each investment? b. If the before tax IRR were partitioned based on the cash flow from operations and the cash flow from the sale, what would be the before tax...
What is the IRR for a project with the following cash flows? O ($10,000) Returns 1...
What is the IRR for a project with the following cash flows? O ($10,000) Returns 1 $4,500 2 $3,250 3 $3,000 4 $1,000 Cost 7.16% 8.91% 9.12%
Required : (a) What is the profitability index for the cashflows if the relevant discount...
Required : (a) What is the profitability index for the cashflows if the relevant discount rate is 10 percent? (b) What is the profitability index for the cashflows if the relevant discount rate is 14 percent? (c) What is the profitability index for the cashflows if the relevant discount rate is 22 percent? Year Cash Flow 0 −$8,400 1 3,000 2 5,000 3 4,000
Complete the following balance sheet Assets 12/31/2018 12/31/2019 Change Cash $25,000 $35,000 $10,000 $15,000 $1,500 $1,500...
Complete the following balance sheet Assets 12/31/2018 12/31/2019 Change Cash $25,000 $35,000 $10,000 $15,000 $1,500 $1,500 Marketable Securities Accounts Receivable Fertilizer and Supplies Investments in Growing Crops Crops held for Sale and Feed $500 $25,000 $48,500 $86,000 $12,000 $8,000 Market Livestock $75,000 $115,000 Total Current Assets Breeding Livestock $45.000 $35,000 Machinery and Equipment $350,000 $315.000 Buildings $75,000 $85.000 $500 $25,000 $48,500 Supplies Investments in Growing Crops Crops held for Sale and Feed $86,000 $12,000 $8,000 Market Livestock $75,000 $115,000 Total...
Trial Balance DR CR Cash 10,000 AR 2,000 Supplies &nb
Trial Balance DR CR Cash 10,000 AR 2,000 Supplies 1,000 Equipment 5,000 Accum depreciation 2,000 Automobile 15,000 Accum depreciation 3,000 AP 5,000 Wages Payable 2,000 Unearned Fees 3,000 Jones, Capital 10,700 Jones, Drawing 1,000 Fees Earned 12,000 Rent Expense 2,000 Wages Expense 1,000 Utility Expense 500 Supplies Expense - Depreciation Expense - Misc. Expense 200 Total 37,700 37,700 The...
1. Project B has following cashflows at years 0 and 1 respectively: $ -4225 and $...
1. Project B has following cashflows at years 0 and 1 respectively: $ -4225 and $ 6302. What is the Internal Rate of Return (IRR) of this project? 2. Assume Fox Inc. has a P/E ratio of 22.5 and a stock price of $ 37.5. Calculate earnings per share of the company.
What is the internal rate of return (IRR) of a project that has the following cash...
What is the internal rate of return (IRR) of a project that has the following cash flows? The required return is 10.0%. Year Cash Flow 0 $ (12,000) 1 $ 3,000 2 $ 3,000 3 $ 3,000 4 $ 3,000 5 $ 3,000 6 $ 3,000
In 2019, Dan contributed $10,000 to Partnership A. His share of ordinary business income was $2,000....
In 2019, Dan contributed $10,000 to Partnership A. His share of ordinary business income was $2,000. His QBI deduction was $400. What is his basis at the end of the year? a) $2,000 b) $10,000 c) $11,600 d) $12,000
5-73 Given the following data, use present worth analysis to find the best alternative, A, B, or C $10,000 15,000 $12,000 Initial cost Annual benefit 6,000 10,000 5,000 Salvage value 1,0002,000 3,000 Useful life 4 years 3 years 2 years Use an analysis period of 12 years and 15% interest.
5-73 Given the following data, use present worth analysis to find the best alternative, A, B, or C $10,000 15,000 $12,000 Initial cost Annual benefit 6,000 10,000 5,000 Salvage value...
10. Two investments have the same expected returns: Year BTCF1 BTCF2 1 $5,000 $2,000 2 10,000 $4,000 3 12,000 $1,000 4 15,000 $5,000 Sale $120,000 $180,000 Investment 1 requires an out lay of $110,000 and investment 2 requires an outlay of $120,000. a. What is the before tax IRR on each investment? b. If the before tax IRR were partitioned based on the cash flow from operations and the cash flow from the sale, what would be the before tax...
What is the IRR for a project with the following cash flows? O ($10,000) Returns 1 $4,500 2 $3,250 3 $3,000 4 $1,000 Cost 7.16% 8.91% 9.12%
Complete the following balance sheet Assets 12/31/2018 12/31/2019 Change Cash $25,000 $35,000 $10,000 $15,000 $1,500 $1,500 Marketable Securities Accounts Receivable Fertilizer and Supplies Investments in Growing Crops Crops held for Sale and Feed $500 $25,000 $48,500 $86,000 $12,000 $8,000 Market Livestock $75,000 $115,000 Total Current Assets Breeding Livestock $45.000 $35,000 Machinery and Equipment $350,000 $315.000 Buildings $75,000 $85.000 $500 $25,000 $48,500 Supplies Investments in Growing Crops Crops held for Sale and Feed $86,000 $12,000 $8,000 Market Livestock $75,000 $115,000 Total...
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