What is the internal rate of return

Assignment Help Accounting Basics

Reference no: EM132088122

Question: X Company is considering launching a new product. The company believes unit sales of this product will be 7,500 in each of the next 4 years, and that the contribution margin will be $6.20 per unit. Additional fixed costs will be $13,442. Equipment costing $120,000 will have to be purchased; the equipment will have no salvage value at the end of 4 years. What is the internal rate of return if the new product is launched?

Reference no: EM132088122

Questions Cloud

Importance for ensuring short-term recovery from disaster : What would be your top three priorities in order of importance for ensuring short-term recovery from a disaster? Why?

Find net present value of the special order : X Company has an opportunity to accept a special order that will result in immediate profit of $64,000. The marketing manager believes.

Preconceived thoughts or beliefs can affect whether : Preconceived thoughts or beliefs can affect whether or not we hear opinions or information that disagree with our own.

How are budgets used for a company or in government : How are budgets used for a company or in government? What would your suggestions be to balance our economic budget

What is the internal rate of return : X Company is considering launching a new product. The company believes unit sales of this product will be 7,500 in each of the next 4 years.

What price should the company charge : Total investment of AAA division $200,000. The minimum desired return on investment equals to 20%. What price should the company charge

What is net present value of replacing the current machine : X Company is unhappy with a machine that they bought just a year ago for $40,000. It is considering replacing it with a new machine that will save significant.

What purchase price would make company indifferent : X Company is considering buying a part next year that they currently make. A company has offered to supply this part for $16.32 per unit.

Some of advantages and disadvantages of federalism : What may be some of the advantages/disadvantages of federalism, which allows for such state-by-state differences?

User Account

All Pages