Determine the profitability in given

Assignment Help Finance Basics
Reference no: EM132058427

Question: A project with the following costs are under consideration to determine its profitability. Using the IRR comparison, and an annual MARR of 10% compounded semiannually, determine if the project should be executed. First cost : $45,000 Semiannual operating cost : $10,000 Semiannual income : $20,000 Salvage value : $9,000 Life in years : 4 years a. IRR = 1.69% b. IRR = 6% c. IRR = 3.4% d. IRR = 3%

Reference no: EM132058427

Questions Cloud

Understanding financial environment of corporations : Financial ratios are employed in understanding the financial environment of corporations.
Computing project net present value in given : A project is expected to create operating cash flows of $26,500 a year for four years. The initial cost of the fixed assets is $62,000.
Calculate the average total cost per unit : During August, 8,000 units of the firm's single product were manufactured. Calculate the average total cost per unit for the 8,000 units manufactured in August
What is one way farmers are protecting the environment : What is one way farmers are protecting the environment? What is one way farmers could harm the environment?
Determine the profitability in given : A project with the following costs are under consideration to determine its profitability. Using the IRR comparison, and an annual MARR of 10%.
Explain why the ppp enzymes are highly expressed : Explain why the PPP enzymes are highly expressed in these tissues/cells?
Legally lenders must disclose both apr and effective rate : Legally lenders must disclose both the APR and Effective Rate. Which one is the true cost of borrowing and why?
How is dnp produced is it at its most basic form : How is DNP produced is it at its most basic form? Is that how it came from nature?
A disaster recovery plan and a business continuity plan : What is the difference between a disaster recovery plan and a business continuity plan?

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd