What is the approximate internal rate of return

Assignment Help Accounting Basics
Reference no: EM132783329

X Company must decide whether to continue using its current equipment or replace it with new, more efficient equipment. The following information is available for the current and new equipment:

Current equipment

Current sales value $12,000

Final sales value 3,800

Operating costs 60,430

New equipment Purchase cost $162,000

Final sales value 3,800

Operating costs 29,920

Problem 1: The current and new equipment will last for 6 years. If X Company replaces the current equipment, what is the approximate internal rate of return?

Reference no: EM132783329

Questions Cloud

What is division a target full product cost : Division A of Dixon, Inc. has $5,000,000 in assets. Its yearly fixed costs are $684,000, What is Division A target full product cost
What will be yearly annuity for the next eighteen years : What will be yearly annuity for the next 18 years? (Use a Financial calculator to arrive at the answer. Round the final answer to the nearest dollar amount.)
How cookies can show that a user has visited a site : Explain how cookies can show that a user has visited a site if that user's history has been deleted. The response must be typed, single spaced.
How much is the loss from inventory decline : Oust the Turtle Company records inventory using the perpetual inventory system. How much is the loss from inventory decline in 2022
What is the approximate internal rate of return : The current and new equipment will last for 6 years. If X Company replaces the current equipment, what is the approximate internal rate of return?
How do geographically dispersed teams collaborate : How do geographically dispersed teams collaborate effectively? Please find at least three tools on the market that teams can use to collaborate.
Organizational communication perspective : Your professional experience, articulate your own organizational communication perspective.
What is the net present value of the investment : The increased sales are expected to last for 8 years. Assuming a discount rate of 4%, what is the net present value of this investment?
Identify a real simple machine around you : Identify a real simple machine around you. Perform an analysis on the machine based on what have you learn in class. Write a technical report on how you handle

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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