Your factory has been offered a contract to produce a part for a new printer. The contract would last for 3 years and your cash flows from the contract would be $ 5.16 million per year. Your upfront setup costs to be ready to produce the part would be $ 8.01 million. Your discount rate for this contract is 8.5 %.
(a) What is the IRR?
(b) The NPV is $ 5.16 million, which is positive so the NPV rule says to accept the project. Does the IRR rule agree with the NPV rule?
Answers: 2
Another question on Business
Business, 21.06.2019 20:30
Elizabeth believes her company has discriminated against her because her minority coworkers, who are less qualified, have been promoted ahead of her. which agency should elizabeth contact? - national alliance of business- affirmative action council- equal employment opportunity commission- federal trade commission- fair employment practices agency
Answers: 2
Business, 22.06.2019 06:30
Select all that apply. what do opponents of minimum wage believe are the results of minimum wage? increases personal income results in job shortages causes unemployment raises prices of goods
Answers: 1
Business, 22.06.2019 10:30
The card shoppe needs to maintain 21 percent of its sales in net working capital. currently, the store is considering a four-year project that will increase sales from its current level of $349,000 to $408,000 the first year and to $414,000 a year for the following three years of the project. what amount should be included in the project analysis for net working capital in year 4 of the project?
Answers: 3
Business, 22.06.2019 18:50
Plastic and steel are substitutes in the production of body panels for certain automobiles. if the price of plastic increases, with other things remaining the same, we would expect: a) the demand curve for plastic to shift to the left. b) the price of steel to fall. c) the demand curve for steel to shift to the left d) nothing to happen to steel because it is only a substitute for plastic. e) the demand curve for steel to shift to the right
Answers: 3
You know the right answer?
Your factory has been offered a contract to produce a part for a new printer. The contract would las...
Questions
Mathematics, 12.02.2021 18:00
Mathematics, 12.02.2021 18:00
Mathematics, 12.02.2021 18:00
Mathematics, 12.02.2021 18:00
Mathematics, 12.02.2021 18:00
Mathematics, 12.02.2021 18:00
Mathematics, 12.02.2021 18:00
Biology, 12.02.2021 18:00
Mathematics, 12.02.2021 18:00
