Please do question part b and show?equations and calculations to explain! Each alternative in the table below
Fantastic news! We've Found the answer you've been seeking!
Question:
Please do question part b and show?equations and calculations to explain!
Transcribed Image Text:
Each alternative in the table below possesses initial investments followed by uniform annual revenues for five (5) years. All alternatives will terminate at 5 years, where the last revenue will be received (i.e. in year 5). For the table below, consider a MARR of 12%. Alternative 0 B Y A Initial Investment $25,000 $30,000 $40,000 $65,000 IRR 13.5% 17.6% X 9.7% ( -- 36.2% 18.0% Р Incremental IRR B -- 7.9% q Y -- r A a. Select the best alternative using Incremental analysis. Give an explanation for your choice (5 Marks) b. Calculate the unknown IRR of alternative y (value X)? (15 Marks) Each alternative in the table below possesses initial investments followed by uniform annual revenues for five (5) years. All alternatives will terminate at 5 years, where the last revenue will be received (i.e. in year 5). For the table below, consider a MARR of 12%. Alternative 0 B Y A Initial Investment $25,000 $30,000 $40,000 $65,000 IRR 13.5% 17.6% X 9.7% ( -- 36.2% 18.0% Р Incremental IRR B -- 7.9% q Y -- r A a. Select the best alternative using Incremental analysis. Give an explanation for your choice (5 Marks) b. Calculate the unknown IRR of alternative y (value X)? (15 Marks)
Expert Answer:
Answer rating: 100% (QA)
a MARR B 13 fr b 12 Y the best alternative maximum The mo... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
State if the following statements are True or False. The Law of Large Numbers explains why it is unlikely that the actuarially fair premium for an insurance policy will be the same for a small start...
-
2) a) Doc Councillman is putting together a relay team for the 400-meter relay. Each swimmer must swim 100 meters of breaststroke, backstroke, butterfly, or freestyle. Doc believes that each swimmer...
-
please help explain and answer study question number 2 & 3 page discussion questions 1. refer to the fundamental principles governing an audit (see chapter 2@ ). under the responsibili
-
1) Explain what creates value and identify if there are aspects that do not create value. (Please include the citation and references) 2)What is the strength of Hyatt Hotel's Loyalty 3)What makes you...
-
Suppose a large retail chain decides to introduce clothing in two types of materials (ordinary, fine) qualities. Each store will have two different proportions (40, 60%) displayed. At the end of the...
-
Read the Problems in the Ethical Considerations feature. In the summer of 2007, the media revealed that the British defense firm BAE had paid over $2 billion in bribes over twenty years to Prince...
-
An introductory statistics instructor believes that the median number of hours that students study each week is less than 15 . He randomly sampled 20 students, asked them to disclose the number of...
-
Allison Corporation acquired all of the outstanding voting stock of Mathias, Inc., on January 1, 2017, in exchange for $5,875,000 in cash. Allison intends to maintain Mathias as a wholly owned...
-
Recommend a site based on these location factors and ratings. Arsenal Electronics is going to construct a new $1.2-billion semiconductor plant and has selected four cities in Ontario as potential...
-
What do you think of using Bud Light and Natural Light brands in naming the new hard seltzer products? Does this brand extension dilute the beer brands even if bolstering the new hard seltzers?
-
2. [5 pts] Consider the function : R \ 0 R, 9 (x) = x+ (a) [1 pt] Draw the graph of f. (b) [2 pts] Let A = [3,0], B = (0,). Prove that f(x) : A B is injective by two different methods i. [1 pt] Using...
-
Lois wants to publish a local newspaper but doesnt have the financial resources to start the business. She borrows $60,000 from her friend Clark, to whom she promises an interest rate of 7 percent,...
-
An economy produces 10 cookies in year 1 at a price of $2 per cookie and 12 cookies in year 2 at a price of $3 per cookie. From year 1 to year 2, real GDP increases by a. 20 percent. b. 50 percent....
-
From 2019 to 2021, during the Covid-19 crisis, the ratio of government debt to GDP in the United States a. increased markedly. b. decreased markedly. c. was stable at a historically high level. d....
-
If Mr. Keating quits his job as a teacher to homeschool his own children, GDP a. stays the same because he is engaged in the same activity. b. rises because he now pays lower income taxes. c. falls...
-
Stagflation is caused by a a. leftward shift in the aggregate-demand curve. b. rightward shift in the aggregate-demand curve. c. leftward shift in the aggregate-supply curve. d. rightward shift in...
-
how polite the parties are to each other in a contract? explain about there behaviors with each other.
-
Write a paper about the Working relationship in the organization- collaboration within and outside the organization
-
Download the spreadsheet from MyFinanceLab that contains historical monthly prices and dividends (paid at the end of the month) for Ford Motor Company stock (Ticker: F) from August 1994 to August...
-
Your son has been accepted into college. This college guarantees that your sons tuition will not increase for the four years he attends college. The first $10,000 tuition payment is due in six...
-
Consider a portfolio of two securities: one share of Johnson and Johnson (JNJ) stock and a bond that pays $100 in one year. Suppose this portfolio is currently trading with a bid price of $141.65 and...
-
Role of controller, role of chief financial officer. George Jimenez is the controller at Balkin Electronics, a manufacturer of devices for the computer industry. The company may promote him to chief...
-
In the following, assume that all growth and discount rates are stated in real terms. 1. Assume the Eurozone inflation-adjusted average growth in capital stock is 3.0 percent per annum into...
-
Which conclusion presented by Ryan about the top-down approach and the bottom-up approach is most likely correct? A. Conclusion 1. B. Conclusion 2. C. Conclusion 3. Use the following information to...
Study smarter with the SolutionInn App