What is the IRR on investment

Assignment Help Accounting Basics
Reference no: EM132605689

Question - Community Health Center (CHC) is considering spending $50,000 on blood analyzer. The annual cash profits from the machine will be $7000 for year of the 7 years of its useful life. The board of directors wants to pursue this investment, because they think the $49,000 CHC will receive is close to the $50,000 cost. What is wrong with the board logic? What is the IRR on investment?

Reference no: EM132605689

Questions Cloud

Discuss strengths and weaknesses of the isd process : Discuss strengths and weaknesses of the ISD process. In your opinion what is the greatest benefit of Instructional System Development (ISD)?
How docalculate direct and indirect non-controlling interest : Apple Ltd, In the space provided - show goodwill entries, intragroup transactions and calculate direct and indirect non-controlling interest.
Discussing the cost-effectiveness of simulation : In this activity, you will produce an original short research paper. Discussing the cost-effectiveness of simulation. Be specific; research a particular.
Children cartoon or children storybook : characters portrayed in gender-stereotyped roles? Are males and females equally represented in exciting plot activities?
What is the IRR on investment : The board of directors wants to pursue this investment, because they think the $49,000 CHC will receive is close to the $50,000 cost. What is IRR on investment
Discuss the key features on approaches : Discuss the key features on both approaches and in what circumstances you would apply each analytical tool?
What is the after-sale support provided to customers : What is the after-sale support provided to customers and exaplain in detail? Customer service./ Production./Distribution./ Marketing.
Identify the issue and create a thesis for your paper : In this unit you will submit your final research paper. For this project you have identified, researched, and described an environmental problem that you person
Disease or medical condition : Choose a disease or medical condition that could possibly, or commonly, affect your individual. This could be anything ranging from diabetes to cirrhosis.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd