Internal rate of return method The internal rate of return method is used by Testerman Construction Co. in analyzing a capital expenditure proposal that involves an investment of $149,630 and annual net cash flows of $45,000 for each of the six years of its useful life. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below. Open spreadsheet Determine the internal rate of return for the proposal.

Answers

Answer 1

Answer:

Answer:

Testerman Construction Co.

Internal rate of return method in analyzing capital expenditure:

Present value of expenditure = $149,630

Present of cash inflows annuity = $149,630 (using 20% discount rate and present value annuity factor of 3.3251 x $45,000)

NPV = $0 (PV of cash outflow - PV of cash inflow)

Therefore, the IRR = 20%

Explanation:

a) Data and Calculations:

Investment cost = $149,630

Annual net cash flows = $45,000

Investment period = 6 years

Annuity of future cash flows = 3.3251

b) Testerman’s IRR (Internal Rate of Return) is a capital budgeting and analysis tool which determines the discount rate that makes the present value of future inflows equal to the present value of outflows from a project. This IRR helps the managers to determine the projects that add value and are worth undertaking. IRR is based on assumptions. Similar projects with the same IRR will differ in returns due to the differences in timing and the size of the cash, the amount of debts and equity used to generate the returns, and the assumption of a constant reinvestment may which IRR makes.

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Answers

Answer: (B) Chatter group and (C) Similar opportunities

Explanation:

The chatter group and the various types of similar opportunities are features which is used by the system administrators for the purpose of facilitating the given working opportunities.

The chatter group is one of the type of collaboration tool in which the various types users can easily interact and also communicating socially.

According to the given question, the universal containers effectively understand that the peers are managing various types of opportunities by using the comparable products and the services with the competitors in the market.

Therefore, Option (B) and (C) are correct answer.

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Answers

Answer:

Cash Collected from customers = $210,500

Explanation:

As for the provided information,

To calculate the cash collected or received from customers, net income is not required,

Using all the remaining information provided,

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Answers

Potential effects of departmental performance reports on employee behavior except including uncontrollable costs served to improve manager's morale.

Explanation:

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Answers

Answer:

c. new classical theory.

Explanation:

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Answers

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What is an Equation?

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Learn more about Equation at brainly.com/question/27392049

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Answers

Answer:

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Explanation:

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