subject
Business, 22.11.2019 07:31 keylor97

Your firm spends $523,000 per year in regular maintenance of its equipment. due to the economic downturn, the firm considers forgoing these maintenance expenses for the next 3years. if it does so, it expects it will need to spend $ 2.1 million in year 4 replacing failed equipment.  

a. what is the irr of the decision to forgo maintenance of the equipment?
b. does the irr rule work for thisdecision?
c. for what costs of capital (coc) is forgoing maintenance a good decision?
a. what is the irr of the decision to forgo maintenance of the equipment?

the irr of the decision is %.

(round to two decimal places.)

ansver
Answers: 3

Another question on Business

question
Business, 22.06.2019 06:40
Self-interest achieve society’s economic goals because producers know which goods consumers want the most. as consumers and producers exercise their freedom to act in their own self-interest, markets will produce the desired goods at the lowest possible cost. consumers and producers both operate based on society’s economic goals. consumers know which goods can be produced at the lowest cost. there is a wide variety of desired goods and services in a market system because producers determine what to produce. consumers change their minds frequently. there is always a need to produce something new and improved. individual wants are diverse. what is produced is ultimately determined by consumers, because if the goods offered are not what consumers want, consumers will not buy them. producers, because they are driven by profits. producers, because they determine what to produce. consumers, because they participate in marketing surveys.
Answers: 2
question
Business, 22.06.2019 16:00
In microeconomics, the point at which supply and demand meet is called the blank price
Answers: 3
question
Business, 22.06.2019 23:00
Acollege registrar's office requires you to first visit with one of three advisors and then with one of two financial professionals. this system best described as which of the following? a. single server, single phase systemb. multiple server multiphase systemc. multiple server, cross phase systemd. single server, multiphase systeme. multiple server, single phase system
Answers: 2
question
Business, 23.06.2019 00:20
Barney corporation recognized a $100 million preferred stock balance on 12/31/2019. on january 1, 2020, barney issued $10 million in preferred dividends. on the same date, barney raised an additional $20 million via a new issuance of preferred stock. on december 31, 2020, the market value of the original amount of preferred shares rose $5 million. under us gaap, the 12/31/2020 year ending preferred stock balance is:
Answers: 3
You know the right answer?
Your firm spends $523,000 per year in regular maintenance of its equipment. due to the economic down...
Questions
question
Chemistry, 29.01.2020 14:03
question
Mathematics, 29.01.2020 14:03