Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jan 18, 2023

Calculate the Internal Rate of return. Ncube Ltd is considering buying a machine and has presented the following Information: Purchase Price R 130 000.00 Expected

Calculate the Internal Rate of return.

Ncube Ltd is considering buying a machine and has presented the following Information: Purchase Price R 130 000.00 Expected Economic life minimum required rate of return net cash inflow rate of taxation depreciation is calculated using the straight-line method 10 Years 12% R25 000.00 30%

Step by Step Solution

★★★★★

3.47 Rating (157 Votes )

There are 3 Steps involved in it

Step: 1

To calculate the internal rate of return IRR of the machine we need to ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Engineering Economy

Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

15th edition

132554909, 978-0132554909

More Books

Students also viewed these Accounting questions

Question

★★★★★

Calculate the internal rate of return (IRR) and the net present value (NPV) of a project with a 15% required return (WACC = 15%) and an initial investment of $3,500,000. The project has a life of 10...

Answered: 1 week ago

Question

★★★★★

Calculate the internal rate of return on the following set of cash flows, according to the economic interpretation of internal rate of return near the end of Section F.3. Assume that the opportunity...

Answered: 1 week ago

Question

★★★★★

Calculate the internal rate of return on the following set of cash flows: t0: ............................-1,000 t1: ............................100 t2: ............................900 t3:...

Answered: 1 week ago

Question

★★★★★

1. As a policy maker you should never worry much about those are eligible for Medicaid benefits and do not enroll. This is because they will enroll in public insurance if they need it. True or False?...

Answered: 1 week ago

Question

★★★★★

Alexandra and Kellie operate a beauty salon as partners who share profits and losses equally. The success of their business has exceeded their expectations; the salon is operating quite profitably....

Answered: 1 week ago

Question

★★★★★

Explain how unethical marketers might use bait-and-switch tactics, price-fixing, and predatory pricing. What is surge pricing?

Answered: 1 week ago

Question

★★★★★

In what research projects are your students currently involved?

Answered: 1 week ago

Question

★★★★★

1. Upon investigation, you learn that the town does not have a strategic plan or a mission statement. In your view, does this affect the current situation? Why or why not? 2. Describe the specific...

Answered: 1 week ago

Question

★★★★★

You are offered an asset costing $1,200 that has cash flows of $200 at the end of each of the next 10 years. What is the IRR of the asset? Multiple Choice 10,56%, 12% 0. 5.56%. 8x

Answered: 1 week ago

Question

★★★★★

The symbol Answered: 1 week ago

Answered: 1 week ago

Question

★★★★★

Check my work Exercise 9-10 Warranty expense and liability computations and entries LO P4 Hitzu Co, sold a copier (that costs $4.800) for $6.000 cash with a two-year parts warranty to a customer on...

Answered: 1 week ago

Question

★★★★★

Blue book Citation Format ses.ucf.edu/courses/139681 1/assignments/7429060 TAKE SOME TIME TO PRACTICE PUTTING THE FOLLOWING INTO BLUEBOOK CITATION FORMAT: 1. Batman versus Superman is a United States...

Answered: 1 week ago

Question

★★★★★

The slope of Chad's indifference curvexc=Axp (A is any constant) at point(xp,xc)isA(xp)2 . What is Chad's marginal rate of substitution at consumption bundle(xp,xc)=(15,7)? Group of answer choices...

Answered: 1 week ago

Question

★★★★★

Mallard Incorporated (MI) is a small manufacturing company that makes model trains to sell to toy stores. It has a small service department that repairs customers' trains for a fee. The company has...

Answered: 1 week ago

Question

★★★★★

According to a recent poll, 25% of adults in a certain area have high levels of cholesterol. They report that such elevated levels "could be financially devastating to the regions healthcare system"...

Answered: 1 week ago

Question

★★★★★

The balanced scorecard provides a picture of the company from the perspective of internal and external customers, employees, and shareholders in terms of satisfaction, innovations, and profitability....

Answered: 1 week ago

Question

★★★★★

Why did you put the equipment and the cash as 13,800 while it should be 13,780 because in the Question they said the cash is 13,000 and the sale tax is 780, so why it's 13,800? 85% OO OMANTEL. 9:02...

Answered: 1 week ago

Question

★★★★★

Identify the source of funds within Micro Credit? How does this differ from traditional sources of financing? What internal and external governance mechanisms are in place in Micro Credit?

Answered: 1 week ago

Question

★★★★★

Suppose the cost of electricity is expected to increase at the rate of 6% per year. How will this new information change your recommendation? Use the original eight-year study period in your analysis.

Answered: 1 week ago

Question

★★★★★

A large mudslide caused by heavy rains will cost Sabino County $1,000,000 per occurrence in lost property tax revenues. In any given year, there is one chance in 100 that a major mudslide will occur....

Answered: 1 week ago

Question

★★★★★

A company produces and sells a consumer product and is able to control the demand for the product by varying the selling price. The approximate relationship between price and demand is where p is the...

Answered: 1 week ago

Question

★★★★★

23. If a statistician wishes to estimate a parameter d subject to a loss function which is linear with k0 = 2kU) and his distribution of 6 is an exponential distribution with X = 4, what is the...

Answered: 1 week ago

Question

★★★★★

11. Suppose that you are offered a choice between Bets A and B: Bet A: You win $1,000,000 with certainty (that is, with probability 1). Bet B: You win $5,000,000 with probability .1 You win...

Answered: 1 week ago

Question

★★★★★

6. What is the primary disadvantage of decision-making rules such as maximin, maximax, and minimax loss?

Answered: 1 week ago

Previous Question Next Question