Solution-What internal rate of return if hurdle rate is ten

What internal rate of return if hurdle rate is ten percent

Assignment Help Managerial Accounting

Reference no: EM132528615

Question 1: Tropical Produce Enterprises, a wholesaler of imported fruits and vegetables, requires considerable equipment to sort and package the produce. The company is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in cash flow of $252,200. The equipment will have an initial cost of $1,303,300 and have an 8-year life. There is no salvage value for the equipment. If the hurdle rate is 10%, what is the internal rate of return? Ignore income taxes. (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) (Use appropriate factor from the PV tables. Round your final answer to the nearest dollar amount.)

Reference no: EM132528615

Questions Cloud

Management accounting systems : Management accounting systems by contemporary companies, in terms of their relevance to the decision-making by managers and achievement of business goals

What the variable cost per machine hour for swan was : What the variable cost per machine hour for Swan was? The company observed that at 20,000 machine hours of activity, total maintenance costs

What the fixed cost for swan was : What the fixed cost for Swan was? The company observed that at 19,000 machine hours of activity, total maintenance costs averaged $37.50

Forensic design assessments : Start by identifying all the annotation features deployed, listing them under the headers of either project or chart annotation

What internal rate of return if hurdle rate is ten percent : If the hurdle rate is 10%, what is the internal rate of return? Ignore income taxes. (Future Value of $1, Present Value of $1, Future Value Annuity)

Briefly discuss the budgeting process : Critically evaluate the comment that 'traditional budgeting practices are constraint on creativity, and the time and energy spent on budget formulation

What are budgeted cash receipts in may : Sales are collected 50% in the month of sale, 30% the month following and the remainder two months after the sale. What are budgeted cash receipts in May?

How does gareth age affect decision to get an mba : How does Gareth's age affect his decision to get an MBA? What other, perhaps nonquantifiable, factors affect Gareth's decision to get an MBA?

Limitations of it strategic planning in health care security : Limitations of IT strategic planning in health care security. How stategic planning improve secuirty

User Account

All Pages

What internal rate of return if hurdle rate is ten percent

Reference no: EM132528615

Reference no: EM132528615

Questions Cloud

Reviews

Write a Review

Managerial Accounting Questions & Answers

Manage budgets and financial plans

Prepare a retained earnings statement

Prepare a master budget for the three-month period

Construct the companys direct labor budget

Evaluate the predetermined overhead rate

Determine the company''s bid

Compute the pool rates for the different activities

Prepare Company financial statements

Prepare an analysis of terracycles

Discuss the ethical issues

Political resources in emerging markets

Management accounting - ehsan electronics company

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT