A small company purchased now for $23,000 will lose $1,200 each year the first four years. An additional $8,000 invested in the company during the fourth year will result in a profit of $5,500 each year from the fifth year through the fifteenth year. At the end of 15 years, the company can be sold for $33,000.
a. Determine the IRR.
b. Calculate the FW if MARR = 12%.
c. Calculate the ERR when externeal reinvestment rate per period is 12%.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “A small company purchased now for $23,000 will lose $1,200 each year the first four years. An additional $8,000 invested in the company ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Han Corp's sales last year were $485,000, and its year-end receivables were $52,500. The firm sells on terms that call for customers to pay 30 days after the purchase, but some delay payment beyond Day 30.
Answers (1)
Cassandra saved $85.25 to buy a stereo. the day she bought it, it was on sale. she had $9.73 left over. how much did she spend on the stereo?
Answers (1)
What is the price at which a dealer will sell a bond?
Answers (1)
Windsor, Inc. uses a perpetual inventory system and reported $533,000 of inventory at the beginning of the month based on a physical count of inventory.
Answers (1)
Liability policies, such as personal liability, professional malpractice, or business liability insurance, do NOT protect the insured against a.
Answers (1)
New Questions in Business
What circumstances during the early days of industrialization led to a need for reform? Check all that apply. -Factory equipment was dangerous to operate. -There were too few capable workers to fill positions.
Answers (1)
In 2010, the Securities and Exchange Commission (SEC) announced its support for Generally Accepted Accounting Principles (GAAP). True False
Answers (1)
On April 1, Fine Corp. faxed Moss an offer to purchase Moss's warehouse for $500,000. The offer stated that it would remain open only until April 4 and that acceptance must be received to be effective.
Answers (1)
Advertising, fashion trends, and new product introductions serve to a. create consumer needs. c. create consumer demand. b. increase income effectiveness. d. minimize the income effect.
Answers (1)
The economy of Atlantia is defined by the private ownership of the means of production. Although products produced and prices are based on market factors, the government intervenes as a regulator to ban harmful products and to set a minimum wage.
Answers (1)