What is the modified internal rate of return

Assignment Help Financial Accounting
Reference no: EM132827826

Question - Bernstein's proposed project has an initial cost of $128,600 and cash flows of $64,500, $98,300, and -$15,500 for Years 1 to 3 respectively. If all negative cash flows are moved to Time 0 at a discount rate of 10 percent, what is the modified internal rate of return? Explain.

a. 9.97%

b. 10.04%

c. 10.00%

d. 9.90%

e. 9.69%

Reference no: EM132827826

Questions Cloud

How much would they offer for this annuity : If they would have wanted to earn a 15 percent on that cash flow, how much would they offer for this annuity
Explain concepts of risk management in health care industry : Explain basic concepts of quality improvement in the health care industry. Explain the concepts of risk management in the health care industry.
What is sakura company research and development expense : The company allocated $15,000 in overhead to research and development. What is Sakura Company research and development expense for 2014
Determining Company CSR Accountability : Generate a report about the company's CSR performance and strategies based on your analysis.
What is the modified internal rate of return : If all negative cash flows are moved to Time 0 at a discount rate of 10 percent, what is the modified internal rate of return? Explain
Identify content-area strengths and opportunities : Reflect on your practice exam results. Identify content-area strengths and opportunities for improvement. Also reflect on your overall test-taking.
Is the transaction nontaxable under code sec : Property worth $1,000 and Tatiana contributed property worth $25,000. Each received 25 shares of Jen Co. Is the transaction nontaxable under Code Sec. 351?
Leaders employ different leadership styles : If leaders employ different leadership styles with various followers, how might it impact organizational effectiveness?
What is the corporation recognized gain or loss : Barbara sells an asset to her wholly-owned corporation.What is the corporation's recognized gain or loss if it sells the asset for $30,000 several years later?

Reviews

Write a Review

Financial Accounting Questions & Answers

  What does mean the amount paid in interest changes

Bond and interest rates have a contrary and reciprocal relationship. If the RATE changes does that mean the amount paid in interest changes?

  Compute how much will your monthly payment be

The annual interest rate is 4.21% for a 5-year loan. Compute how much will your monthly payment be

  What is the intrinsic value of rrv common stock

RRV's beta is 1.50, the market risk premium is 5.50%, and the risk-free rate is 3.00%. What is the intrinsic value of RRV's common stock?

  Why are companies selling their receivables

An article recently appeared in the Wall Street Journal indicating that companies are selling their receivables at a record rate. Why are companies selling their receivables?

  Ethics and standard costs

Farmer Frank’s produces items from local farm products and distributes them to supermarkets. Over the years, price competition has become increasingly important, so Susan Kramer, the com- pany’s controller, is planning to implement a standard cost sy..

  Journalize the entry to record the accrual of payroll taxes

According to a summary of the payroll of Bailik Co., $880,000 was subject to the 6.0% social security tax and the 1.5% Medicare tax. Also, $40,000 was subject to state and federal unemployment taxes. Calculate the employer's payroll taxes, using the ..

  Q george company has a standard costing system the

q george company has a standard costing system. the subsequent data are available for julyactual manufacturing overhead

  Controllable variance

If productive capacity of 100% was 10,000 hours and the factory overhead cost budgeted at the level of 6,000 standard hours was $309,000, determine the variable factory overhead Controllable Variance, fixed factory overhead volume variance, and total..

  How much supplies expenses should be reported

A physical count at December 31 showed supplies on hand of $450. How much Supplies Expenses should be reported on the 2018 Income Statement?

  Explain the accounting treatment for each of the events

Explain the accounting treatment for each of the events/transactions in accordance with IAS 10 Events After the Reporting Period for the year ended 30 June

  Find what is the amount of amt credit that can be claimed

Find what is the amount of AMT credit that can be claimed in 2019. Dawson inc had regular tax due of 35,000 for the tax year ending December 31, 2019

  Calculate washed waters capital expenditure

Calculate Washed Water's capital expenditure. Washed Water, a technology manufacturer that produces water purification products

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