A property was acquired for $950,000 and then produced cash flows of $100,000, $120,000, $135,000, $135,000, and $125,000 at the end of years one through five, respectively. The property was then sold for $1,200,000 at the end of the fifth year. What was the internal rate of return for this investment?

Answers

Answer 1

Answer:

Answer:

IRR= 17%

Explanation:

The internal rate of return is the profitability (IRR) of the money that remains invested during a project life. To calculated we need to use the net present value formula (NPV). The IRR is the rate at which the NPV is cero. I attached the formula but it is better to calculate the IRR using excel.

First, you have to copy all cash flows including the investment with a negative sign. Then you use the financial formula "IRR" in this way:

"=IRR(C3:C8)" (I attached the excel figure)

In this case, you have to sum the cash flow produced by the property plus the earnings of the its sale on year 5.

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An income statement for Sam's Bookstore for the first quarter of the year is presented below:Sam's BookstoreIncome StatementFor Quarter Ended March 31Sales $ 910,000Cost of goods sold 560,000Gross margin 350,000Selling and administrative expensesSelling $ 119,000Administration 142,000 261,000Net operating income $ 89,000On average, a book sells for $65. Variable selling expenses are $4 per book with the remaining selling expenses being fixed. The variable administrative expenses are 3% of sales with the remainder being fixed.The contribution margin for Sam's Bookstore for the first quarter is:____________
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the c shellsort() function takes an array of gap values as a parameter. the array must contain a gap value of to guarantee proper sorting.

Answers

If the collection of gap values contains 1, ShellSort will correctly sort an array using that collection. the InsertionSort method The normal insertion sort is identical to interleaved with a gap of 1.

How does Shellsort work?

An expanded variant of the insertion sort algorithm is shell sort. In order to lessen the distance between the components to be sorted, it first sorts those that are far apart from one another. Based on the chosen sequence, the space between the pieces is compressed.

What is gap size in shell sort?

We start by selecting a gap size, which establishes the distance between the values in a subsequence. In the case of a starting gap size of 6, for instance, the first subsequence would contain values at positions 1, 7, 13, 19, and so forth, whereas the second subsequence would contain values at positions 2, 8, 14, 20, and so forth.

To know more about Shellsort visit: brainly.com/question/23609675

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An individual shareholder owns 3,000 shares of Baxter Corporation common stock with a basis of $10 per share. She receives a nontaxable 5% stock dividend. The basis per share of the common stock after the stock dividend isA.$9.00.B.$10.00.C.$9.52.D.$9.50.

Answers

Answer:

C.$9.52

Explanation:

Existing shares of individual shareholder = 3,000

Stock dividend received = 5%

Number of shares received in stock dividend = Existing shares of individual shareholder x Stock dividend received

= 3,000 x 5%

= 150

Number of shares after stock dividend = 3,000 + 150

= 3,150

The shareholder has basis of $10 per share before stock dividend,

total basis before stock dividend = 3,000 x 10

= $30,000

Total basis will remain same after stock dividend.

Basis per share after stock dividend = Total basis before stock dividend/Number of shares after stock dividend

= 30,000/3,150

= $9.52

Therefore, The basis per share of the common stock after the stock dividend is %9.52

Oriole Company has collected the following information related to its December 31, 2017, balance sheet.Accounts receivable $16,000
Accumulated depreciation—equipment 46,700
Cash 11,000

Equipment $173500
Inventory 64,500
Supplies 5,000

Requried:
Prepare the assets section of Oriole's balance sheet.

Answers

Answer:

Oriole Company

Assets side of the Balance Sheet:

Assets:

Current Assets:

Cash $11,000

Accounts Receivable 16,000

Supplies 5,000

Inventory 64,500 $96,500

Non-current assets:

Equipment $173,500

less acc. depreciation 47,700 $125,800

Total Assets $222,300

Explanation:

The assets side of the balance sheet is usually prepared in the order of liquidity, starting with the most liquid assets, Cash in the Current Assets subsection, or working capital for running the operations of the business. It ends with the most illiquid assets called non-current assets, which form the core resources of the entity in generating revenue. The accumulated depreciation is subtracted from the non-current assets to obtain the net non-current or fixed assets value.

A firm facing a price of $15 in a perfectly competitive market decides to produce 100 widgets. If its marginal cost of producing the last widget is $12 and it is seeking to maximize profit, the firm should

Answers

Answer:

Produce more widgets.

Explanation:

Given the price charge by the competitive firm is = $15

The unit produced = 100

The marginal cost of the last unit = $12

The firm should produce more widget because in the competitive market the firm charge the price that is equal to MC. Moreover, in the given question the price is greater than the marginal cost. Therefore, the firm should produce more widgets in order to reach the condition “P=MC”.

44,000 shares of common stock outstanding at a market price of $32 a share. The common stock will pay a $1.50 annual dividend and has a dividend growth rate of 3.5 percent. There are 7,500 shares of 9% preferred stock outstanding at a market price of $92 a share. The outstanding bonds mature in 11 years, have a total face value of $825,000, a coupon rate of 6.5 percent, a face value per bond of $1,000, and a market price of $989 each. The tax rate is 35 percent. What is the weight of equity in to be use to calculate the firm's WACC?

Answers

Answer:

The weight of equity in to be use to calculate the firm's WACC is 0.48 or 48%

Explanation:

The weight of equity to be used in firm's WACC computation is market value of equity divided by the sum of market value of equity ,preferred stock and bonds.

Market value of equity=44,000*$32 =$1,408,000.00

Market value of preferred stock=7,500*$92 =$690,000

Market value of bonds=$825,000*$989/$1000=$815,925.00

Sum of market values =$ 2,913,925.00

Weight of equity=market value of equity/Sum of market values=$1,408,000.00/$2,913,925.00= 0.48 =48%

Sandpiper Inc. has a division that manufactures a component that sells for $ 160 and has a variable cost of $ 35. Another division of the company wants to purchase the component. Fixed cost per unit of the component is $ 25. What is the minimum transfer price if the division is operating at capacity?

Answers

Answer:

market price $160

Explanation:

The division is operating at capacity.

This means is selling all the output to the market.

So if the division purchase at a lower price than market, it will reduce the profit of the division.

It this case the division minumin transfer price is the market price which is $160 Doing otherwise decrease the income of the company.

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