What is the internal rate of return on this investment?

Q: ing could be purchased for sole use by the corporation at a total price of $4.5 million, of which…

A: The answer is stated below:

Q: Kolby's Korndogs is looking at a new sausage system with an installed cost of $695,000. This cost…

A: Installed Cost is $695,000 Life of project is 5 years Initial Investment in net working capital is…

Q: RYN steel works bought an innovative equipment for steel beam manufacturing. The company expects to…

A: Present worth = Future value / (1+r)^n

Q: Acme Manufacturing is considering a project that requires an investment in new equipment of…

A: Termination cash flow is the final net cash flow that occurs at the end of the project. It is the…

Q: Howell Petroleum is considering a new project that complements its existing business. The machine…

A: Net Present Value : The Net Present Value is the net of present value of future cash flow and…

Q: Finnegan Company plans to invest in a new operating plant that is expected to cost $762,500. The…

A: Formulas that are used:-

Q: The ABC Corporation is considering opening an office in a new market area that would allow it to…

A: Hello. Since you have posted multiple questions and not specified which question needs to be solved,…

Q: Jordan Corporation is considering a new product that will be very popular for a couple of years and…

A:

Q: What is the equivalent annual saving from the purchase if Gluon can depreciate 100% of the…

A: Given information is: Gluon Inc. is considering the purchase of a new high pressure glueball. It can…

Q: Bennett Industries invested $10,000,000 in a coventure one year ago. One year later, Bennett…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Gluon Inc. is considering the purchase of a new high pressure glueball. It can purchase the glueball…

A: Equivalent annual savings is $10,226.31.  Computation of equivalent annual savings: Excel spread…

Q: Modern Artifacts can produce keepsakes that will be sold for $60 each. Nondepreciation fixed costs…

A: Your answers to part (a), (b) and (c) are correct. Hence, I am not solving them again. Further you…

Q: Evergreen Company is investigating the feasibility of buying a new production line producing a new…

A: Introduction: Net present value (NPV) is one of the capital budgeting method that helps in…

Q: The TinX Corp. is investing in a machine which will increase the quality of their product. The…

A: Net present value  (NPV) is the distinction between the current estimation of money inflows and the…

Q: The TinX Corp. is investing in a machine which will increase the quality of their product. The…

A: NPV is helpful in evaluation of any project. Positive NPV is a good indicator and increase the…

Q: In order to produce a new product, a firm must lease equipment at a cost of $185,000 per year. The…

A: At the break-even point, the contribution equals the fixed cost of the entity. To calculated the…

Q: Shine Co. is looking at expanding its business to include Bitcoin Mining, and change their name to…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: A firm, whose cost of capital is 9 percent, may acquire equipment for $110,783 and rent it to…

A: Net Present Value (NPV) is a capital budgeting technique which uses a discount rate to bring all the…

Q: Nick’s Enterprises has purchased a new machine tool that will allow the company to improve the…

A: Annual cash flow:

Q: Acme Inc. has invested $50,000 in a new assembly line. Products produced by the new assembly line…

A: The MARR is the minimum accepted rate of return from an investment. Given in the question: Cost of…

Q: Dinshaw Company is considering the purchase of a new machine. The invoice price of the machine is…

A: GIVEN   Dinshaw Company is considering the purchase of a new machine. The invoice price of the…

Q: Based on the above information and assuming that the asset class is CLOSED calculate the NPV.…

A: Net present value (NPV) is one of the capital budgeting method that helps in evaluating a project’s…

Q: Gluon Inc. is considering the purchase of a new high pressure glueball. It can purchase the glueball…

A: Initial investment of the company is the sum of the cost of high pressure glueball plus after tax…

Q: Crow Corporation, a company that specializes in precision metal fabrication, is conducting a study…

A: Given information: Interest rate is 12% Number of years is 2 Cost is $260,000

Q: Walden Industries is considering investing in production−management software that costs $620,000​,…

A: Accounting Rate of Return is a very easy but effective tool for…

Q: Suppose Francine Dunkelberg’s Sweets is considering investing in warehouse-management software that…

A: Accounting Rate of Return:  The accounting rate of return is the amount of income that is earned…

Q: Quick Computing currently sells 17 million computer chips each year at a price of $11 per chip. It…

A: Cash flows are the movement of real or virtual money within the organization due to business…

Q: Bailey, Inc., is considering buying a new gang punch that would allow them to produce circuit boards…

A: It is a discount rate at which the net present value equal to zero.

Q: Your firm is contemplating the purchase of a new $410,000 computer-based order entry system. The…

A: For determining the IRR of this project we will have to compute the operating cash flows and the…

Q: The initial purchase price of a new stamp press is $6,000. The firm will spend $5,000 on shipping…

A: Initial purchase price of a new stamp is $6,000 Shipping and installation cost us $5,000 Training…

Q: hey project unit sales as in the below table, and they project price per unit to be $120 per unit at…

A:

Q: Nine Point Industries is trying to decide whether to invest in equipment to manufacture a ne…

A: Increase in sales = $94,000 Decrease in Material Cost =$37,000 Equipment Cost = $148,000 Time Period…

Q: Gluon Inc. is considering the purchase of a new high pressure glueball. It can purchase the glueball…

A: Here, Purchase price of Glueball is $170,000 Selling Price of Old low-pressure glueball is $30,000…

Q: If the Rhine Company ignores the possibility that other firms may enter its market, it should set a…

A: Calculation of Present values when Selling Price of the unit is $10,000 and Firms enter into the…

Q: worthwhile to invest in the insulation? What is the payback period of the investment?

A: Reduction in fuel = P190000 × 20% = P38000  Less: Annual cost of taxes and insurance = 5% of P120000…

Q: First Chance Company is considering purchasing a bulldozer. The bulldozer will cost $125,000 and…

A: after-tax cash flows are the cash flows that the company generate net income from its core business…

Q: A small office building could be purchased for sole use by the corporation at a total price of $5.3…

A: In this question , we would be preparing cashflow statement for the ABC Corporation.    Note #…

Q: The TinX Corp. is investing in a machine which will increase the quality of their product.The…

A: Particulars Year 1 yYear 2 Year 3 Year 4 Sales 4,00,000 4,00,000 4,00,000 4,00,000 Less:-…

Q: Shunt Technology will spend $800,000 on a piece of equipment that will  manufacture fine wire for…

A: Net investment is the total of all expenses which are incurred to operate or run the project. it…

Q: ordon Corporation is considering the acquisition of a new machine that costs $149,040. The machine…

A: Given: Initial Investment = $149040 Number of years = 4 Annual savings = $45000

Q: Camellia Engineering Ltd is a manufacturer of high pressure steam valves and steam traps. Its…

A: At the IRR rate, the Initial investment will be equal to the present value of all the cashflows…

Q: If the Rhine Company ignores the possibility that other firms may enter its market, it should set a…

A: Calculation of present value of earning (PVOE) using excel when the price of product is $10,000:

Q: Barker Production Company is considering the purchase of a flexible manufacturing system. The…

A: The payback period, NPV and IRR are the values determined for comparing the available projects for…

Q: A corporation is trying to decide whether to buy the patent for a productdesigned by another…

A: The computations as follows:

Q: our firm, Agrico Products, is considering a tractor that would have a cost of $37,000, would…

A: NPV of the tractor when the useful life is 5 years:

Q: If the Rhine Company ignores the possibility that other firms may enter its market, it should set a…

A: Net present value of future sales revenue at both price levels.

Q: Vandalay industries is considering the purchase of a new machine for the production of latex.…

A: Equivalent annual cost (EAC) is used to compare two assets which have different life spans. It…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.