Beam Cable Company is considering investing $450,000 in telecommunications equipment that has an estimated life of...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Beam Cable Company is considering investing $450,000 in telecommunications equipment that has an estimated life of four years with no residual value. The cash inflows are as shown below: Year 1 2 3 4 $120,000 235,000 140,000 98,000 The present value of $1: 10% 11% 0.901 0.812 0.731 1 0.909 2 0.826 3 0.751 4 0.683 0.659 0.636 5 0.621 0.593 0.567 12% 13% 0.893 0.885 0.797 0.783 0.712 0.693 .613 0.543 The IRR of the project would be 14% 0.877 0.769 0.675 0.59 0.519 Beam Cable Company is considering investing $450,000 in telecommunications equipment that has an estimated life of four years with no residual value. The cash inflows are as shown below: Year 1 2 3 4 $120,000 235,000 140,000 98,000 The present value of $1: 10% 11% 0.901 0.812 0.731 1 0.909 2 0.826 3 0.751 4 0.683 0.659 0.636 5 0.621 0.593 0.567 12% 13% 0.893 0.885 0.797 0.783 0.712 0.693 .613 0.543 The IRR of the project would be 14% 0.877 0.769 0.675 0.59 0.519
Expert Answer:
Answer rating: 100% (QA)
To calculate the Internal Rate of Return IRR of the project we need to find the discount rate at whi... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Use the attached "words.txt" file to store the words along with their ranks in an AVL tree. Then provide the user the option to search for any word. If the word exists the program displays the rank...
-
Consider the function f: RR defined by f(x,y)=e+y-2r-3y. (a) Find and classify the critical points of f using the second derivative test. [4 marks] (b) Let P be the point (0,2). Using linear...
-
The trial balance follows of the Masters Golf Club, Inc. as at December 31. The books are closed annually on December 31. Instructions (a) Enter the balances in ledger accounts. Allow five lines for...
-
Provide a detailed description of the JDBC three-tier model and its function.
-
On January 1, 2018, David Mest Communications granted restricted stock units (RSUs) representing 30 million of its $1 par common shares to executives, subject to forfeiture if employment is...
-
Heather Reasonover opted to try Internet service from Clearwire Corp. Clearwire sent her a confirmation e- mail that included a link to its Web site. Clearwire also sent her a modem. In the enclosed...
-
The statement is made often. It is not really true, as a convertible's issue price reflects the underlying stock's present price. Further, when the bond or preferred stock is converted, the holder...
-
Information concerning a product produced by Ender Company appears here: Sales price per unit .................... $200 Variable cost per unit ................... $80 Total annual fixed manufacturing...
-
Problem 4. Let f (I, y) = 372 + y2 2y + 1. Determine the maximum and minimum value of f (m, y) over the region R = {(27, y) : 1172 + y2 = 4}
-
Consolidation related simulation example: Millennium Capital Management, Inc., (MCM) acquired a 90% interest in NextGen, Inc. MCM's Financial Manager, Matthew Steven, has prepared a draft memo to the...
-
How are advancements in distributed ledger technology and blockchain reshaping the landscape of financial services, facilitating innovations such as decentralized finance (DeFi), smart contracts, and...
-
Compared with a manual system, the consequences of error in a computer system often are more serious because: a. Errors in computer systems tend to be stochastic Cmanual are b. Computer systems...
-
Clear lines of authority and responsibility are sometimes difficult to achieve in a computer system because: a. Resources are shared and ownership is sometimes difficult to assign b. Duties...
-
From an information systems audit perspective, which of the following is the most valuable asset in an information systems facility: a. Hardware b. Database c. Personnel d. Software
-
In a computer system, the audit trail is: a. Still always present in some type of hard-copy form b. Disappearing as more online, realtime update systems are used c. Produced automatically by software...
-
Which of the following statements about information systems personnel is false: a. Historically, information systems personnel have been in short supply b. Information systems personnel have lacked a...
-
STAT1800-90 SP22-23 Business Statistics (STAT1800-90 SP22-23) Announcements Start Here-Course Information Content Bb Collaborate Calendar Forum: DF Post Organize Forum Thread More Help
-
Show, if u(x, y) and v(x, y) are harmonic functions, that u + v must be a harmonic function but that uv need not be a harmonic function. Is e"e" a harmonic function?
-
In Problems 750, follow Steps 1 through 7 on page 367 to graph each function. Steps for Graphing a Rational Function R STEP 1: Factor the numerator and denominator of R. Find the domain of the...
-
In Problems 17, find the real solutions of each equation. 3x x + 1 = 0
-
The amount of heat transferred per hour through a glass window varies jointly with the surface area of the window and the difference in temperature between the areas separated by the glass. A window...
-
The Acorn Nursery School Corporation provides baby-sitting and childcare programs. On January 31, 20xx, the company had the following trial balance: During the month of February, the company...
-
Graph \(A\). \(b ightarrow c ightarrow f ightarrow e ightarrow d ightarrow b ightarrow e\) Use the figure shown to determine whether the sequence of vertices in the given graph is a Hamilton path, an...
-
Graph A. \(e ightarrow b ightarrow c ightarrow f ightarrow e ightarrow b ightarrow e\) Use the figure shown to determine whether the sequence of vertices in the given graph is a Hamilton path, an...
Study smarter with the SolutionInn App