Sandhill Co. Bonita Industries Net cash provided by operating activities $ 81,330 $91,400 Average current liabilities 49,800 94,900 Net income 181,900 181,900 Capital expenditures 37,660 69,250 Dividends paid 4,570 9,920Compute free cash flow for both companies and compare. (Show a negative free cash flow with either a-sign e.g.-15,000 or in parenthesis e.g. (15,000).) Bonita Industries Windsor Inc. Free cash flow $ $ v 's free cash flow is better.

Answers

Answer 1

Answer:

Free cash flow = Net cash flow from operating activities - Capital expenditures - Dividends paid

Sandhill free cash flow  

= 81,330 - 37,660 - 4,570

= $39,100

Bonita industries

= 91,400 - 69,250 - 9,920

= $12,230

Sandhill Free cash flow is better.


Related Questions

A recent study determined that, at the current market price, there is a shortage of widgets in Pleasantville. If the market for widgets is allowed to adjust, the ultimate result will be:

Answers

Answer: b. an increase in price and an increase in the quantity supplied

Explanation:

According to the law of supply and demand, when the supply of a good is low, the price should be high to reflect this scarcity. In this case, the supply of widgets is low, hence the shortage.

If the market was able to freely adjust, the price of widgets would increase to reflect this shortage. When supplies see this increase, they will increase their supply so as to earn more profits.

LUVFINANCE, Inc. is estimating its WACC. The firm could sell, at par, $100 preferred stock that pays a 10 percent annual dividend and incurs 6.19% flotation costs. What is the cost of new preferred stock financing

Answers

Answer:

$10.66

Explanation:

Calculation to determine the cost of new preferred stock financing

Cost of new preferred stock financing=(100*10%)/(100*(1-0.0619))

Cost of new preferred stock financing=10/(100*(1-0.0619))

Cost of new preferred stock financing=10/(100*0.9381)

Cost of new preferred stock financing=10/93.81

Cost of new preferred stock financing=$10.66

Therefore the cost of new preferred stock financing is $10.66

1. Ranghu started business with cash $80,000, goods $40,000 and furniture $20,000.
2. Sold goods to Anna of the list price $2000 at trade discount of 10%.
3. Paid rent $800, Trade expenses $400and Travelling expenses $500.
4. Deposited to AC bank for opening a current account $25,000.
5. Bought goods from Kamal for $20,000 at a trade discount of 10% and Cash discount of 2%. Paid 60% amount immediately.

Answers

Answer:

1.Raghu start the business with three things i. e cash, goods, furniture etc. Something that come in the business is debited. All these things are done by the properitor. Hence all these things are goes to Capital account. JOURNAL ENTRY WILL BE!!!! Cash a / c . Dr. 80,000 Purchase a / c . Dr. 40,000 Furniture a / c . Dr 20,000 ..To Capital a/c........... 1,40,000 (being started business with cash, goods and furniture.)

2.The answer will be Rs.1800 Explanation: 2000^ * 10\%=200 2000-200=18003.Answer will be $7004.250005.5000

please mark as brainliest

If a firm has sales of $100, total expenses (including interest and taxes) of $50, has a stock that is selling at $50 per share and has 10 shares of stock outstanding, then the firm has a P/E ratio of:

Answers

Answer: 10

Explanation:

P/E Ratio = Price per share/Earnings per share

Earnings per share:

= (Sales - expenses) / number of shares outstanding

= (100 - 50) / 10

= $5.00

P/E Ratio is therefore:

= 50 / 5

= 10

If unit sales prices are $7 and variable costs are $5 per unit, how many units would have to be sold to break-even if fixed costs equal $8,000?

Answers

Answer: 4,000 units

Explanation:

The breakeven point of sales can be calculated by the formula:

= Fixed costs / Contribution margin

Contribution margin = Sales price - Variable cost

= 7 - 5

= $2

Breakeven point in sales:

= 8,000 / 2

= 4,000 units

b) Take a real time example of a company which has formed a strategic alliance then talk about strategic relationships. What is their rate of success? Why do businesses develop strategic partnerships?

Answers

Answer:

c

Explanation:

11. (-/1 Points] DETAILS BRECMBC9 5.11.010.
MY NOTES
Set up and solve an equation for the following business situation.
Pitt's Pit Stop sold $16,003.50 worth of gasoline yesterday. Regular sold for $3.30 a gallon and premium sold for $3.45 a gallon. If the station sold 370 more gallons of regular than premium, answer the
following questions.
(a) How many gallons of each type of gasoline were sold?
regular
gal
premium
gal
(b) If the profit on regular gas is $0.15 per gallon and on premium is $0.18 per gallon, what was the station's total profit (in dollars)?
$

Answers

Answer:

2190 ; 2560 ;

$778.2

Explanation:

Total worth of gasoline sold = 16003.50

Cost of regular = 3.30

Cost of premium = 3.45

Let :

premium Gallon sold = x

Regular gallon sold = 370 + x

Hence, mathematically;

(3.45*x) + (3.30 * (x + 370)) = 16003.50

3.45x + 3.30x + 1221 = 16003.50

6.75x = 16003.50 - 1221

6.75x = 14782.5

x = 14782.5 / 6.75

x = 2190

Premium Gallon sold = 2190 gallons

Regular gallon sold = 2190 + 370 = 2560 gallons

Profit per regular gallon sold = $0.15

Progit per premium Gallon sold = $0.18

Total profit = (2190 * 0.18) + (2560 * 0.15) = $778.2

MLX has annual sales of $320 million per year and has calculated the collection float to be 12 days. If MLX is currently paying 9.35% on its line of credit, what amount of interest expense could be saved if the collection float is reduced by 3 days? (Assume 365 days per year.

Answers

Answer: $245918

Explanation:

Following the information given in the question, the amount of interest expense that could be saved if the collection float is reduced by 3 days will be calculated thus:

= Sales × Interest × Sales reduction/365

= $320 million × 9.35% × 3/365

= $245918

Therefore, the interest expense that can be saved is $245918.

Mô hình cổ điển cho rằng đất đai là yếu tố quan trọng của tăng trưởng, đồng thời là yếu tố giới hạn của tăng trưởng

Answers

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Hope it helpsjjfjfbenchcnfbebnw17289494ncnwbbsbc

Profit margin is synonymous with the term _______ and tells whether or not total profit will be positive.

Answers

Answer: Average profit

Explanation:

Both average profit and profit margin show the percentage of profit that a company can expect to receive from $1 worth of sales. It is calculated by dividing the profits by the sales figure,

If sales are $10 and profits are $3, the profit margin would be:

= 3/10

= 30%

This means that for every $1 of sales, there is $0.30 in profit. This method shows us whether the total profit will be negative or positive by showing us individual product profit.

The ________ is the difference between merchandise imports and exports and a measure of a country's international trade in goods.

Answers

Answer:

balance of trade

Explanation:

Trade can be defined as a process which typically involves the buying and selling of goods and services between a producer and the customers (consumers) at a specific period of time.

Basically, trade can be categorized into two (2) main groups and these are;

I. Import: this involves bringing in goods from a foreign country to sell in a different (domestic) country.

II. Export: it involves the sales of goods produced in a domestic country to a foreign country.

In Economics, a balance of trade is a measure of the difference between merchandise imports and exports, as well as a country's international trade in goods. Thus, it's a measure of the difference between the monetary value of the import and export of goods of a country over a specific period of time.

According to the results, if a CEO in the Financial industry and a CEO in the Health Care industry both have 88 years of experience, what is the estimated difference in annual salary between the two CEOs

Answers

Answer: $19,032.79

Explanation:

There is some data missing that I was unable to find so I will answer a similar question and can use your data to answer this using mine as a reference.

Because the healthcare industry is the base industry, the estimated difference in the annual salary is:

= 0 - Coefficient of Financial industry

= 0 - (-19,032.787112)

= 0 + 19,032.787112

= $19,032.79

People with expertise tend to have more influence using ___, whereas those with a strong legitimate power base are usually more successful applying ___.
A. upward appeal; persuasion
B. silent authority; coalition formation
C. persuasion; silent authority
D. silent authority; assertiveness
E. information control; persuasion

Answers

Answer:

C. persuasion; silent authority

Explanation:

Influence tactics can be regarded as steps that can be taken by people in order to exert influence on others in a particular organization, thereby bringing about achieving their goals. If successfully applied, influence tactics can help junior managers or lower level that lack substantial sources of power to be able to exert impact on both behavior and decisions of others within that organization.

Silent Authority can be regarded as silent application of authority, which can be elaborated as when someone complies with a particular request as a result of the requester’s legitimate hierarchical power and role expectations of the target person. This condition is often been referred to as deference to authority. As regards to deference, it takes place, where one comply with ones boss in completion of particular task, let say this task falls within one's job scope and ones boss has the right in making this request, then we can say the influence strategy works without persuasion or negotiation.

As an expert ,one would have broad as well as deep competence in terms of knowledge, experience and skill, with help of practice and education in a specific field. Individuals that has expertise usually have influence with the use of persuasion.

Power provide a person or unit with

opportunity to exert influence as regards organizational outcomes. Influence can be regarded as power in action. It should be noted that People with expertise tend to have more influence using persuasion, whereas those with a strong legitimate power base are usually more successful applying silent authority.

Shellhammer Company's inventory records show the following data for the month of September: Units Unit Cost Inventory, September 1 100 $3.34 Purchases: September 8 450 3.50 September 18 350 3.70 A physical inventory on September 30 shows 200 units on hand. If the company uses FIFO inventory costing and a periodic inventory system, the the value of ending inventory at the end of September is

Answers

Answer:

Ending inventory $740

Cost of goods sold $2,464

Explanation:

Calculation to determine the value of ending inventory and cost of goods sold if the company uses FIFO inventory costing and a periodicinventory system.

Calculation for the value of ending inventory

Ending inventory of 200 units= 200 x $3.70

Ending inventory of 200 units = $740

Calculation for Cost of goods sold:

Units available for sale= (100 + 450 + 350) = 900

Units sold= 900 – 200 = 700

100 × $3.34 = $ 334

450 × $3.50 =$1,575

150 × $3.70 =$555

Cost of goods sold $2,464

($ 334+$1,575+$555)

Therefore the value of ending inventory is $740 and cost of goods sold if the company uses FIFO inventory costing and a periodicinventory system will be $2,464

Identify the simplifying assumptions usually made in net present value analysis.

a. AlI cash flows Other than the initial investment occur at the end of periods.
b. All cash flows generated by the investment project are immediately reinvested at a rate of return greater than the discount rate.
c. All cash flows generated by the investment project are immediately reinvested at a rate Of return equal to the discount rate,
d. All cash flows occur at the beginning of the periods,
e. The time value of money is ignored when evaluating investment proposals under the net present value analysis.

Answers

Answer:

a

c

Explanation:

net present value analysis is a capital budgeting method

It is used to analyse the profitability of an investment

A collateralized debt obligation (CDO) bundles house payments and creates safe, okay, and risky investment vehildes. Group of answer choices True False

Answers

Answer:

The answer is "True".

Explanation:

The CDO is a complicated support materials instrument that is funded and sold to investors with a pool of credit as well as other assets. A CDO is a special type of derivative since its value was generated from another subordinated asset, as this is mentioned in the title. This guaranteed outstanding debt combines repayments from the home and produces safe, all legal, and hazardous financial instruments.

The following data relates to Black-Out Company's estimated amounts for next year. Estimated: Department 1 Department 2 Manufacturing overhead costs $ 300,000 $ 400,000 Direct labor hours 60,000 DLH 80,000 DLH Machine hours 1,000 MH 2,000 MH What is the company's plantwide overhead rate if machine hours are the allocation base

Answers

Answer:

Predetermined manufacturing overhead rate= $233.33 per machine hour

Explanation:

Giving the following information:

Total estimated overhead= 300,000 + 400,000= $700,000

Machine hours= 1,000 + 2,000= 3,000

To calculate the predetermined manufacturing overhead rate we need to use the following formula:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 700,000 / 3,000

Predetermined manufacturing overhead rate= $233.33 per machine hour

The central bank of Canada is the Bank of Canada.
Suppose that inâ Canada, banks' reserves at the Bank of Canada were $1 âbillion, Bank of Canada notes were $60 billion, and the quantity of coins was $4 billion. What was the monetary base?

Answers

Answer:

$65 billion

Explanation:

Monetary base means the total sum of banks’ reserves at the Fed (Bank of Canada), Federal reserve notes (Bank of Canada notes), and quantity of coins.

Monetary base = $1 billion + $60 billion + $4 billion

Monetary base = $65 billion

All standard costing methods use the predetermined overhead rate to apply factory overhead. This is based on an estimated amount that is calculated during the budgeting process at the beginning of the year. Therefore, there will almost always be a variance between the factory overhead that is applied and the actual factory overhead that is accumulated. These variances should be a minimal amount, but may sometimes be material. Therefore, it is important that an accountant find the cause of the variance, so as not to repeat it. Determining the reasons for variances is an important part of the overall process of variance analysis. Certain causes are commonly attributed to specific variances. Match each reason on the left with the variance(s) it commonly creates. Each numbered item has one or more correct answer(s). Each lettered item may be used once, more than once, or not at all.
1. A change in the quality of materials purchased
2. A new supplier contract
3. Error in the accounting records
4. Change in proportion of spoiled materials
5. Unreasonable standard
6. Unanticipated overtime hours
7. A change in the government-mandated minimum wage
8. Equipment malfunction
9. A change in average worker experience or training
A. Direct materials price variance
B. Direct materials quantity variance
C. Direct labor rate variance
D. Direct labor efficiency

Answers

Answer:

1. A change in the quality of materials purchased

Variance: Direct materials quantity variance

2. A new supplier contract

Variance: Direct materials price variance

3. Error in the accounting records

Variance: Direct materials price variance

4. Change in proportion of spoiled materials

Variance: Direct materials quantity variance

5. Unreasonable standard

Variance: Direct labor efficiency

6. Unanticipated overtime hours

Variance: Direct labor rate variance

7. A change in the government-mandated minimum wage

Variance: Direct labor rate variance

8. Equipment malfunction

Variance: Direct labor efficiency

9. A change in average worker experience or training

Variance: Direct labor efficiency

On November 1, 20Y9, Lexi Martin established an interior decorating business, Heritage Designs. During the month, Lexi completed the following transactions related to the business:
Nov. Lexi transferred cash from a personal bank account to an account to be used for the business in exchange for common stock, $27,100.
1Paid rent for period of November 1 to end of month, $3,300.
6Purchased office equipment on account, $12,840.
8Purchased a truck for $30,500 paying $7,000 cash and giving a note payable for the remainder.
10Purchased supplies for cash, $1,740.
12Received cash for job completed, $7,500.
15Paid annual premiums on property and casualty insurance, $2,300.
23Recorded jobs completed on account and sent invoices to customers, $12,410.
24Received an invoice for truck expenses, to be paid in November, $1,400.
Enter the following transactions on Page 2 of the two-column journal:Nov. 29 Paid utilities expense, $4,500. 29 Paid miscellaneous expenses, $1,000. 30 Received cash from customers on account, $9,000. 30 Paid wages of employees, $6,800. 30 Paid creditor a portion of the amount owed for equipment purchased on November 6, $3,000. 30 Paid dividends, $2,500. how it do Journal

Answers

Answer:

looks good no mistakes and uh b if this is a question

The following data relate to a company that produces and sells a travel guide that is updated monthly: Each book sells for $20.00. The company sold 8,000 books in June and 10,000 books in July. The unit contribution margin per book is:

Answers

Answer:

10.30

Explanation:

20

8000

160 000 June

10000

200 000 July

20 - 3.20 -4 - .50 -2 = 10.30

costs:Printing and binding...............................$3.20 per copyBookstore discounts................................$4.00 per copySalespersons’ commissions....................$0.50 per copyAuthor’s royalties...................................$2.00

Kevin's Company uses a normal costing system, applying overhead using a single plant-wide rate. At the beginning of the year, budgeted (estimated) manufacturing overhead costs totaled $400,000, budgeted direct labor hours totaled 80,000 hours and budgeted machine hours totaled 20,000 hours. At the end of the year, the actual overhead costs recorded totaled $450,000 and actual direct labor hours were 86,000. Kevin's Company's production process is very labor-intensive and therefore uses direct labor hours as the activity base. With this information, what is the assigned (applied) amount of MOH that Sherfield Company assign to production

Answers

Answer:

$430,000

Explanation:

MOH recovery rate = Estimated MOH / Estimated direct labor hours

MOH recovery rate = $400,000 / 80,000 hours

MOH recovery rate = $5 per direct labor hours

So, the applied amount of manufacturing overhead rate is $5

Assigned amount of MOH = MOH recovery rate * Actual direct labor hours

Assigned amount of MOH = $5 * 86,000 DLH

Assigned amount of MOH = $430,000

Bonita Industries purchased machinery for $1030000 on January 1, 2017. Straight-line depreciation has been recorded based on a $82000 salvage value and a 5-year useful life. The machinery was sold on May 1, 2021 at a gain of $27500. How much cash did Bonita receive from the sale of the machinery?
a. $138,000
b. $162,000
c. $198,000
d. $258,000

Answers

Answer:

$235,900

Explanation:

Depreciation p.a. = ($1030000 - $82,000) / 5 years

Depreciation p.a. = $189,600

Depreciation charged till the Jan 1 ,2021 (4 years)

= $189,600 * 4 years

= $758,400

Depreciation charged till May 1, 2021 (4 month)

= $189,600 * 4 months/12 months

= $63,200

Value of the asset = $1030000 - $758,400 - $63,200

Value of the asset = $208,400

Cash received from sale of machinery = $208,400 + $27,500 (gain)

Cash received from sale of machinery = $235,900

You want to buy a car and a local bank will lend you $18,500. The loan will be fully amortized over 5 years, and the nominal interest rate would be 4.65%, with interest paid monthly. What is the monthly loan payment

Answers

Answer:

$346.16

Explanation:

The monthly loan payment can be calculated using a Financial calculator as follows :

PV = $18,500

N = 5 x 12 = 60

I/YR = 4.65%

P/YR = 12

FV = $0

PMT = ??

The monthly loan payment (PMT) is calculated as $346.16

Schultz v. Capital International Security, Inc. 460 F.3d 595 (4th Cir. 2006) Facts: The plaintiff-agents provided security services for Schultz and his family at his Virginia residence in twelve-hour shifts. The agents were paid a daily rate for each shift; they received no extra pay for overtime. The agents had a command post at the residence, from which they observed security camera monitors, answered the telephone, and kept a daily log of all arrivals and departures. They also made hourly walks of the property, ensured that members of his family were safe when departing and arriving, sorted mail, and performed various tasks upon request of his family. In addition to their security duties, the agents were responsible for having the household’s vehicles washed and fueled, making wake-up calls, moving furniture, and doing research on the Internet. Schultz's long-time driver and travel agent, Sammy Hebri, formed a company called Capital International Security, Inc. (CIS). Hebri started CIS for the purpose of becoming Schultz's security contractor. Hebri sent a memo (dated July 24, 2002) to the agents directing them to obtain their own private security business licenses from the VDCJS and individual liability insurance so they could be classified as independent contractors. Issue: The issue is whether the bodyguards were considered to be employees or independent contractors for the purpose of the Fair Labor Standards Act. Action: You must respond to all questions below. You must use at least three sources from the class materials and do independent research. Do not combine the five discussion questions and please use the outline below for your paper. Use of the outline will help you organize your research and comments and ensure you do not miss any questions that must be addressed. Your responses to each question must be in narrative format not bullets. Use the headings below to organize your paper.
Question 1A - a. Summarize the relevant facts of the case. What is your opinion on the outcome of this case?
Question 1c - Classification Test: In the above case, what kind of classification test could have been used and what would be the result?

Answers

Answer:

Hence the answer is given as follows,

Explanation:

1A) In the given case, the agents who are the plaintiffs were working as security guards for Schultz and his family. There was miscellaneous work that they were required to conduct for the family. The agents were paid a daily wage and weren't paid overtime. Schultz’s driver opened a replacement company called CIS and asked the agents to get their own private security business licenses in order that they will get classified as independent contractors. So, the difficulty arises that whether the agents should be classified as employees or as independent contractors.

The agents were paid a daily wage and not a salary. Moreover, they weren't qualified for overtime pay. Employees usually get salaries and are eligible to urge over time by the overtime work. Hence the agents are independent contractors and can't be considered employees.

1C) In the given case, a hybrid classification test is often wont to check the status of whether the agents were employees or independent contractors. A hybrid classification test has characteristics of right to regulate test also as economic realities test. Schultz and his family weren't controlling the work of the agents. The agents had pre-determined work and that was conducting it in an independent manner. The agents also were paid on a day to day and didn't have a timekeeping requirement. Hence the agents can qualify as independent contractors and not employees as per the hybrid classification test.

Pearson Electric Company uses the high-low method to analyze mixed costs. The following information relates to the production data for the first six months of the year.
Month Cost(Y) Hours(H)
January $8,050 335
February $9,750 780
March $8,040 460
April $8,110 380
May $10,210 1,055
June $9,510 755
What is the estimated total cost at an operating level of 1,180 hours, using the high-low method? (Round variable cost per unit to 2 decimal places.)

Answers

Answer:

Results are below.

Explanation:

First, we need to calculate the variable and fixed costs:

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (10,210 - 8,050) / (1,055 - 335)

Variable cost per unit= $3

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= 10,210 - (3*1,055)

Fixed costs= $7,045

Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 8,050 - (3*335)

Fixed costs= $7,045

Now, the total cost for 1,180 hours:

Total cost= 7,045 + 3*1,180

Total cost= $10,585

Rediger Inc. a manufacturing company, has provided the following data for the month of June. The balance in the Work in Process inventory account was $22,000 at the beginning of the month and $17,000 at the end of the month. During the month, the company incurred direct materials cost of $55,000 and direct labor cost of $28,000. The actual manufacturing overhead cost incurred was $53,000. The manufacturing overhead cost applied to jobs was $51,000. The cost of goods manufactured for June was: _________.
a. $141,000
b. $139,000
c. $134,000
d. $136,000

Answers

Answer:

b. $139,000

Explanation:

The cost of goods manufactured is the total costs incurred in the month of June in producing goods which comprise direct costs of labor, direct materials,factory overhead and so on shown in the attached excel file.

Rediger Inc.  

Cost of goods manufactured schedule  

Direct materials purchased  $55,000  

Direct labor                        $28,000  

Total direct costs                 $83,000  

factory overhead                  $51,000  

Total manufacturing costs  $134,000  

Work in process  1/1          $22,000  

Work in process  12/31         ($17,000)

Cost of goods manufactured      $139,000  

Harding Company is in the process of purchasing several large pieces of equipment from Danning Machine Corporation. Several financing alternatives have been offered by Danning: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 1. Pay $1,160,000 in cash immediately. 2. Pay $461,000 immediately and the remainder in 10 annual installments of $94,000, with the first installment due in one year. 3. Make 10 annual installments of $156,000 with the first payment due immediately. 4. Make one lump-sum payment of $1,730,000 five years from date of purchase. Required: Determine the best alternative for Harding, assuming that Harding can borrow funds at a 8% interest rate. (Round your final answers to nearest whole dollar amount.)

Answers

Answer:

Option-2 is best alternative

Explanation:

Option-1

Present value of lumpsum amount -1160000

Option-2

Annual paymentt for 10 yrs -94000

Annuity for 10 yrs at 8% 6.7101

Present value of outflowws -630749

Add: Initial amount paid -461000

Present value of outflowws -1091749

Option-3

Annual paymentt for 9 yrs -156000

Annuity for 10 yrs at 8% 6.24689

Present value of outflowws -974515

Add: Initial amount paid -156000

Present value of outflowws -1130515

Option-4

Amount paid after 5 yrs -1730000

PVF at 5 yrs at 8% 0.680583

Present value -1177409

Option-2 is best alternative

The number of all credit-card holders in the U.S. is IN(a) million card holders and the collective amount of credit card debt that all credit-card holders carry is D(x) billion dollars, x years after 2010. The average credit card debt per card holder at year x is:

Answers

Answer: D(x) / IN(a)

Explanation:

If one wanted to find out the average credit card debt per card holder then the correct formula would be:

= Amount of debt that all credit card holders carry / Number of credit card holders

As the amount of debt that all credit card holders carry is denoted by D(x) and the number of credit card holders is IN(a), the average credit card debt per card holder is:

= D(x) / IN(a)

Acme Company is considering investing in a new machine that costs $126,594 and that has a useful life of 12 years with no salvage value. The machine will generate $19,500 annually in net cash inflows. The internal rate of return on the investment is: (Round your intermediate calculations to 3-decimals and your internal rate of return calculations to the nearest whole percent.)

Answers

Answer: 11%

Explanation:

The internal rate of return is the rate that will equate the cash inflows with the cost of investment.

It is therefore the discount rate used to find the present value of an annuity because the inflows are stable and are therefore annuities.

Present value of annuity = Annuity * Present value factor of annuity, 12 years, %?

126,594 = 19,500 * Present value of annuity factor

Present value of annuity factor = 126,594 / 19,500

= 6.492

Go to a present value of annuity factor table and find the interest rate that intersects with 12 years to give a factor of 6.492:

Rate is 11%

Other Questions
multiple the following [tex] \frac{18}{15} \times \frac{25}{12} [/tex] How to be a good student and a good child? josue bought 7 pounds of pretzels at a local wholesaler for $16.80. his friend ricardo bought 5 pounds of pretzels at the supermarket for $12.75. Ricardo thinks he got the better deal because $12.75 is less than $16.80. Is Ricardo's reasoning correct? Explain why or why not. Write a program that prompts the user to input an integer that represents cents. The program will then calculate the smallest combination of coins that the user has. For example, 27 cents is 1 quarter, 0 nickel, and 2 pennies. That is 27=1*25+0*5+2*1.Example program run 1: Enter number of cents: 185 Pennies: 0 Nickels: 0 Dimes: 1 Quarters: 7 Example program run 2: Enter number of cents: 67 Pennies: 2 Nickels: 1 Dimes: 1 1. a. myth b. cycling c. itchy d. allergy2. a. headache b. spread c. health d. weak3. a. fat b. leaf c. of d. safe4. a. flu b. sunburn c. junk d. much5. a. wash b. wear c. wake d. wrap What temperature scale is used in the ideal gas equation A 0.0780 kg lemming runs off a5.36 m high cliff at 4.84 m/s. Whatis its potential energy (PE) when itjumps? AMERICAN LITERATURE what is your perspective of the American identity? please i need help with this. Read this sentence.American writer Henry David Thoreau spent time in solitude at Walden Pond.Based on your knowledge that solitude means "time spent alone," what is the best definition of solitary?being by oneself without companyisolated or desolateoccurring as part of a groupfeeling sad or depressed What is the range of the function shown in the graph below? Cual es el resultado de la siguiente divisin ( 1/3 a^2 b^5 1/2 a^5 b^4 + 2/5 a^3 b 5a^2 b^7) / ( 5a^2 b^2) How many solutions does the system have?x+y=35x+5y=15 DNA is referred to as a_____,meaning that it has_______strands that are______together. explain briefly about florence nightingale What does the phrase "Let's heat up the night" mean to you? thin wires have high resistance whereas thick wires have low resistance why???can anyone say answer of this ^_^ Read this paragraph.Drivers education has always taught the rules of the road and safety behind the wheel. Students must learn about signs and rights-of-way. Todays drivers education must also address modern-day concerns. Students must learn the dangers of texting and driving.What is the central idea of the paragraph?Drivers education no longer needs to teach the rules about highway signs and rights-of-way.Drivers education must expand to include modern-day concerns, such as texting and driving.Students in drivers education should study the rules of the road if they hope to succeed in class.Students in drivers education should not text their friends during class because it is a distraction. Which is the graph of f(x) = -(x + 3)(x + 1)?8422222-8626 468-64X2-2-2192 Select the correct answer.Why is it necessary to review job trends while making a career plan?OAto review past achievementsOB.to explore new training opportunitiesO C.to list wants and needsOD.to build the rsum If the ring rolls (without slipping) all the way to point 2, what is the ring's energy at point 2 in terms of h2 and v2?