The Utah Mining Corporation is set to open a gold mine near Provo, Utah. According to the treasurer, Monty Goldstein, "This is a golden opportunity." The mine will cost $3,200,000 to open and will have an economic life of 11 years. It will generate a cash inflow of $425,000 at the end of the first year, and the cash inflows are projected to grow at 8 percent per year for the next 10 years. After 11 years, the mine will be abandoned. Abandonment costs will be $480,000 at the end of Year 11.


What is the IRR for the gold mine? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).)

Answers

Answer 1

Answer:

IRR = 13.05%

Explanation:

using an excel spreadsheet, the cash flows are:

year 0 = -$3,200,000

year 1 = $425,000

year 2 = $425,000 x 1.08 = $459,000

year 3 = $459,000  x 1.08 = $495,720

year 4 = $535,378

year 5 = $578,208

year 6 = $624,464

year 7 = $674,422

year 8 = $728,375

year 9 = $786,645

year 10 = $849,577

year 11 = ($849,577  x 1.08) - $480,000 = $917,543 - $480,000 = $437,543  

IRR = 13.05%

The internal rate of return (IRR) is the discount rate at which a project's NPV (net present value) would equal $0.


Related Questions

Small businesses selling on credit find that:

a. it is relatively inexpensive and simple.

b. it is expensive and requires a great deal of effort.

c. it is essentially borrowing money from the customer.

d. many can get by without selling on credit because their business customers don't expect to use credit.

Answers

Answer:

b. it is expensive and requires a great deal of effort.

Explanation:

selling on credit is basically lending money to customers and it can be very expensive for a small business. First of all, the risk of not getting paid always exists. Second, a small business doesn't generally have excess cash in order to finance credit sales. This means that you might probably need to borrow money yourself to finance your customers.

The good side of credit sales is that they might help you increase your total sales. But you have to calculate which is higher, the costs or the benefits.

Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next nine years because the firm needs to plow back its earnings to fuel growth. The company will pay a dividend of $10 per share 10 years from today and will increase the dividend by 6 percent per year thereafter. If the required return on this stock is 10 percent, what is the current share price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Answers

Answer:

$106.02

Explanation:

Div₀ - Div₉ = 0

Div₁₀ = $10 and then will grow by 6% forever

we must first determine the terminal value for year 9 using the dividend growth model:

P₉ = Div₁₀ / (Re - g) = $10 / (10% - 6%) = $10 / 4% = $250

now we shall discount this to present day value:

P₀ = $250 / (1 + 10%)⁹ = $250 / 2.3579 = $106.02

One month ago, Kyle made a goal to save $800 for a new video camera. The deadline is in seven months. He now has $110 saved. Evaluate his progress toward reaching his goal. Is Kyle on track to reach his goal? Yes or no?

Answers

Answer:

No, he will not reach his goal if he saves $110 per month.

Explanation:

Answer:

yes

Explanation:

This software application can be used to organize, analyze, and illustrate data.

Answers

Answer:

its Excel :)

Explanation:

I learned abt it

Answer:

person above me

Explanation:

airline pilots are transportation and tourism career true or false​

Answers

Answer:

True

Explanation:

(i have no explanation i just know)

Answer:

True

Explanation:

Airplane pilots fly people to different areas around the world( which may be for tourism) so they are part of the transportation and tourism career.

plz tell me the books that I need to study for bcom 1st year (my major subject is accounts)​

Answers

Answer:

And financial expression

Which is NOT a career cluster?
A.
Agriculture, food and natural resources
B.
Human services
C.
Health sciences
D.
Business, management, and administration

Answers

Answer:

All are career clusters

Explanation:

1. Agriculture, food, and natural resources

The agriculture, food, and natural resources cluster encompass everything associated with the production of agricultural products. Careers' titles in the cluster include farmers, veterinary officers, and scientists.

2. Human services

This cluster includes cosmetologist psychologists, social workers, hairdressers, and other professionals related to human beauty and mental wellness sub-sectors.

3. Health sciences

Professionals in the Health Sciences cluster work in hospitals, chemists, clinics, and patients' homes. They include nurses, doctors, clinicians, pharmacists, paramedics, and healthcare operators.

4. Business, management, and administration

The cluster consists of careers in business-related fields. They include marketers, finance and business analysts, accountants, managers, and HR experts. It also features many junior entry-level positions, like clerks, typists,  secretaries, and front office workers.

Answer:

None, they are all career clusters

Explanation:

I hope this helped buddy.

Which type of economy is used by the United States?
HELPPPPPPPPP

Answers

Answer:

mixed economy

Explanation:

The United States has a mixed economy. It works according to an economic system that features characteristics of both capitalism and socialism.

mixed economy

The United States has a mixed economy. It works according to an economic system that features characteristics of both capitalism and socialism

List the six shifters (NPDs) of demand

Answers

Answer:

Changes in income

Changes in the number of consumers

Changes in consumer tastes and preferences

Changes in consumer expectations

Changes in the price of substitute goods

Changes in the price of complementary goods

Explanation:

What is the best what to make money

Answers

Explanation:

Be a Customer Service Rep. U-Haul offers the best of both worlds. ...

Fill Out Surveys Online. Survey Junkie is a website that pays teens for sharing their opinion. ...

Get Paid to Search the Internet. ...

Test Products. ...

Sell Textbooks. ...

Design T-Shirts. ...

Babysit. ...

Offer Services For $5.

What sort of work can 14 and 15-year-olds do?

Barista.

Busser.

Caddy.

Cashier.

Dog walker.

Dishwasher.

Grocery bagger.

Host/hostess.

What should you do in the following scenario?

You are meeting with a colleague and within the conversation, the colleague talks about going to dinner with a client, holding hands, and seems to indicate he is thinking of pursuing a relationship.

Answers

Answer:

it seems kind of inappropriate to have a relationship with a client

Explanation:

PLEASE HELP QUICKLY: (FIRST ANSWER GETS BRAINLIEST) PERSONAL & FAMILY FINANCE

Owen wants to start a tutoring business. He has a space rented and a lot of ideas, but he has no employees who can tutor the students. Which category of economic resource does he require?





labor





entrepreneurial ability





land

Answers

Answer:

entrepreneurial ability

Sorry, no one answered your question sooner, hope that helps.

labor <><><><><><><><><><><><>

Timothy Gates and Prada Singh decide to form a new company, TGPS LLC (a multimember LLC that will report its operations as a partnership). Timothy is married, and Prada is single. Each contributes $400,000 of capital to begin the business, and both materially participate in the business. In 2019, TGPS reports a net loss of $580,000. What are the implications of this loss for Timothy and Prada?

Answers

Answer:

Since Timothy is married (and probably files as married filing jointly) can use $290,000 (half of the total loss) to offset nonbusiness income.

On the other hand, since Prada is single, she has an excess business loss of $40,000 ($290,000 - $250,000). She can only use $250,000 (part of her share of the loss) to offset nonbusiness income. The remaining $40,000 must be carried forward and may be used in the future.

This is the experience curve for the fictional Motorcycle STICKER industry. The average slope is .167 meaning that for every doubling of output costs drop 83.3%. Xtreme Stickers Inc. just came out with a brand new product that is better than anything else in the industry. Even though we are talking abut stickers competitors cannot copy you very quickly. As the CEO of Xtreme Stickers Inc. you need to decide how to price your stickers. What pricing model will you choose?

Answers

Answer:

Aggressive Pricing Model

Explanation:

In a scenario such as this one, the best pricing model would be an aggressive pricing model. This is because due to the slope being 0.167 this means that the faster your business grows the lower prices you can charge for your product while still making the same profit margins. This is due to your output costs dropping by more than half as you grow. These lower prices also allow you to compete with the other industries in the market and outperform them drastically due to being able to charge a much lower price for the same product as the competition.

To complete your pictorial representation of the problem, you should compile two lists: one of known quantities and one of the unknown quantities that will allow you to answer the question in the problem. below are all of the relevant quantities in this problem. sort them accordingly.

Answers

Answer:

Follows are the solution to this question:

Explanation:

Its quantities identified are the following:

[tex]\to x_i , a_x, (v_x)_i , (V_x)_f , and \ \ t_i[/tex]

The number of uncertain are the following:

[tex]\to X_f \ \ and \ \ t_f[/tex]

Reyes manufacturing company uses a job order cost system. at the beginning of january, the company had one job in process (job 201) and one job completed but not yet sold (job 200). job 202 was started during january. other select account balances follow (ignore any accounts that are not listed).

Answers

Question Completion:

During January, the company had the following transactions:

a) Purchased $20,000 worth of materials on account.

b) Recorded materials issued to production as follows:

Job Number          Total Cost

201                           $12,000

202                            21,000

Indirect materials       3,200

                              $36,200

c) Recorded factory payroll costs from direct labor time tickets that revealed the following:

Job Number   Hours   Total Cost

201                     100         $2,150

202                    500        10,750

Factory supervisor's         5,000

                                      $17,900

d) Applied overhead to production at a rate of $25 per direct labor hour for 600 actual direct labor hours.

e) Recorded the following actual manufacturing overhead costs:

Items                         Total Cost  Description

Factory rent              $3,100       Paid in cash

Depreciation              2,500       Factory equipment

Factory utilities           1,750        Incurred but not paid

Factory insurance      1,250        Prepaid policy

                                $8,600

f) Completed Job 201 and transferred it to Finished Goods Inventory.

g) Sold Job 200 for $31,000.

Job 202 was still in process at the end of January.

Requirement: Post all transactions to T-accounts, including offsetting accounts, like the Cash Account, etc.

Answer:

Reyes Manufacturing Company

T-accounts:

Raw materials

Account Titles                 Debit     Credit

Accounts payable        $20,000

Job 201                                       $12,000

Job 202                                        21,000

Indirect materials                          3,200

                         

Accounts payable

Account Titles                 Debit     Credit

Raw materials                             $20,000

Job 201

Account Titles                    Debit     Credit

Raw materials                 $12,000

Salaries expenses              2,150

Manufacturing overhead  2,500

Finished Goods                              $16,650

Job 202

Account Titles                    Debit     Credit

Raw materials                 $21,000

Salaries expenses            10,750

Manufacturing overhead 12,500

Ending Balance                              $44,250

Finished Goods Inventory

Account Titles                    Debit     Credit

Job 201                             $16,650

Cost of Job 200 sold                      $

Cost of goods sold

Account Titles                    Debit     Credit

Finished goods                   $

Sales Revenue

Account Titles                    Debit     Credit

Cash                                              $31,000

Cash Account

Account Titles                   Debit     Credit

Sales revenue              $31,000

Manufacturing overhead

Account Titles                 Debit     Credit

Raw materials               $3,200

Salaries expenses          5,000

Job 201                                          $2,500

Job 202                                          12,500

Salaries Expense

Account Titles                 Debit     Credit

Job 201                                        $2,150

Job 202                                        10,150

Manufacturing overhead             5,000

Explanation:

All the accounts involved in Reyes Manufacturing Company's January transactions are posted to the general ledger in the form of T-accounts with debit and credit sides.  The balances are not extracted.

What is the difference between quality leadership and survival pricing?
A. Quality leadership yields a higher profit while survival pricing
yields a lower profit.
B. Quality leadership is intentionally setting high prices while survival
pricing is intentionally lowering prices.
C. Quality leadership is for higher quality products while survival
pricing is for lower quality products.
D. Quality leadership is for larger business while survival pricing is for
smaller business.

Answers

Answer:

b.

Explanation:

The distinction between quality leadership and survival pricing is that the former involves purposefully raising prices, while the latter involves purposefully lowering prices.

Thus, Option B is correct.

What are the prices for Quality Leadership and Survival?

When a business strives to offer the greatest product on the market and charges more than its rivals, this is known as product quality leadership. Typically, these businesses are market leaders. The stage in the product life cycle can also affect the pricing targets for specific goods or services. Survival—a strategy used when a company needs to set prices at a level that just makes it possible for it to stay in operation and pay for necessary expenses.

For a brief period of time, survival takes precedence over making a profit. The only time that survival pricing should be applied is temporarily or on a limited basis.

For more information about quality leadership refer to the link:

https://brainly.com/question/14157544

#SPJ5

The population hypothesis regarding ethical management models is A. the three models approximate a normal, bell-shaped curve. B. that the moral management model is the largest segment of the normal curve. C. that the immoral management model is the largest segment of the normal curve. D. the three models exhibit a skewed curve, weighted toward either moral or immoral management models, depending on the society being studied.

Answers

Answer:

A

Explanation:

Assume that at one point a business sells organizers for a price of $20 each, which cost $10 to produce (variable costs). The business's fixed expenses for the period are $4,000. What is the break-even point?
300 units
200 units
100 units
400 units

Answers

Answer:

400 units

Explanation:

From the contribution margin concept, the break-even point is obtained by dividing the fixed costs by the contribution margin per unit.

For this business, fixed costs are $4,000

Contribution margin per unit  is equal to sales price - variable cost per unit

=$20 - $10

= $10

Break-even point = $4000/$10

=400 units

A type of investment that gives a person a share of ownership in a company
is a
A. savings account
O B. bond
O c. stock
O D. hedge fund

Answers

The answer is C-stock I think

A type of investment that gives a person a share of ownership in a company is a stock. Thus, option (c) is correct.

What is a stock?

A stock is a type of investment that gives a person a share of ownership in a company. When a person buys a stock, they become a partial owner of the company and are entitled to a portion of the company's profits.

Stocks are traded on the stock market, and their prices can fluctuate depending on a variety of factors, such as the company's performance, investor sentiment, and overall market conditions. Stocks are important because they provide investors with the potential to earn returns on their investments, and they provide companies with capital to fund their operations and growth.

Therefore, it can be concluded that a type of investment that gives a person a share of ownership in a company is a stock. Hence, option (c) is correct.

Learn more about stock, here:

https://brainly.com/question/29992015

#SPJ7

In a society with a market economy, property rights are generally enforced by
A. the banks
B. the courts
C. the producers
D. the consumers

Answers

Answer:

ccccccccccccccccccccccc

Explanation:

A job application is a form used to make a job request. (3 points)
True
False

Answers

Answer:

I would say it is True.

Explanation:

A job application form states your personal information

Damerly Company (a Utah employer) wants to give a holiday bonus check of $350 to each employee. Since it wants the check amount to be $350, it will need to gross-up the amount of the bonus. Calculate the withholding taxes and the gross amount of the bonus to be made to John Rolen if his cumulative earnings for the year are $46,910. Besides being subject to social security taxes and federal income tax (supplemental rate), a 5% Utah income tax must be withheld on supplemental payments.

Answers

Answer:

$350

Explanation:

Calculation for the withholding taxes and the gross amount of the bonus to be made to John Rolen if his cumulative

Social Security rate 6.20%

Medicare rate 1.45%

Federal Income tax 22.00%

State income tax 5.00%

Total tax percentage 34.65%

Calculation for the Required gross bonus

Required gross bonus =$350/(1-34.65%)

Required gross bonus=$350/1-0.3465

Required gross bonus=$350/0.6535

Required gross bonus=$535.57

Gross bonus amount $535.57

Federal Income tax withheld (117.82) ($535.57*22%)

OASDI tax withheld (33.20)

($535.57*6.2%)

HI tax withheld (7.76)

($535.57*1.45%)

Utah Income tax withheld (26.77)

($535.57*5%)

Take home bonus check $350.00

Therefore the withholding taxes and the gross amount of the bonus to be made to John Rolen if his cumulative will be $350.00

The Howell Company has prepared a sales budget of 40 comma 000 finished units for a​ 3-month period. The company has an inventory of 11 comma 000 units of finished goods on hand at December 31 and has a target finished goods inventory of 13 comma 000 units at the end of the succeeding quarter. It takes 3 gallons of direct materials to make one unit of finished product. The company has inventory of 61 comma 000 gallons of direct materials at December 31 and has a target ending inventory of 58 comma 000 gallons at the end of the succeeding quarter. How many gallons of direct materials should Howell Company purchase during the 3 months ending March​ 31?

Answers

Answer:

Purchases=  123,000 gallons

Explanation:

Giving the following information:

Sales:

40,000 finished units for 3 months.

Finished goods inventory:

Beginning inventory= 11,000 units

Desired ending inventory= 13,000 units

It takes 3 gallons of direct materials to make one unit of finished product.

Direct material inventory:

Beginning inventory= 61,000 gallons

Desired ending invenyory= 58,000 gallons

First, we need to calculate the production for the period:

Production= sales + desired ending inventory - beginning inventory

Production= 40,000 + 13,000 - 11,000

Production= 42,000 units

Now, we can calculate the purchases:

Purchases= production + desired ending inventory - beginning inventory

Purchases= 42,000*3 + 58,000 - 61,000

Purchases=  123,000 gallons

____ are specialized accountants who look for evidence of improper accounting methods.

A. Public accountants
B. Government accountants
C. Fraudulent accountants
D. Forensic accountants

Answers

Answer:

i think that the answer is C

Explanation:

Answer:

Forensic accountants

Explanation:

just trust me on this man

What is not a good approach to a question about your weaknesses? You should avoid using the word "weakness," but answer honestly. You should exaggerate a little in your answer to impress the interviewer. You should show how you've been working to improve in the area you mention. You should avoid trying to make it a positive: "I tend to work too much."

Answers

B . You should exaggerate a little in your answer to impress the interviewer.

Explanation:

im smart <3

Answer:

its b

Explanation:

i took the test and got 100%

A copyright protects a company that uses an original author's work without permission. (6 points)

True
False

Answers

Answer:

false

Explanation:

copyright protects the author's work when it is used without permission.

Answer:

es Falso

Explanation:

esperó que te sirva marcarme como mejor respuesta PORFA y gracias

please help me with this match the column​ if i get perfect answer then i will give brainliest

Answers

Answer:

what do you need help on

Explanation:

The company you work for is expanding and needs more office space. After reviewing several contractors’ proposals, you decide on one. When writing to the other contractors, what could you include in your closing that would explain the bad news in a sensitive manner? Check all that apply. A forward look A canned ending An expression of good wishes A review of the bad news

Answers

Answer:

The correct answers are the options: A forward look and An expression of good wishes.

Explanation:

To begin with, the fact that the company has decided for a contractor and needs to tell to the other ones that they were not selected it is not a bad action to take so primarily the other companies should understand due to the fact that they must know how to do business. Even though that, the manager or employee who is in charge of letting the other companies know that they were not selected must understand as well that a good touch is always helpful to make those companies feel not bad about it, and the person who writes to them can tell that in the future they might have another chance to work together so they need to have a forward look because their projects were good as well. And of course an expression of goods wishes for future jobs is always a good ending.

Living at home could save you money while enrolled in post secondary school or training because...

Answers

Pros of living at home
1. it includes having the support of your family
2. Not having to share your room
Many students also love at home for the first two years while attending a community college to earn credits and save money before moving to their dreams school.
Cons of living at home
1. Many feel it's harder to make friends if ur living off campus
2. A course may require a supplemental activity

Answer: it reduces costs of room and board.

Explanation:

Other Questions
Which part of an animal or plant cell contains the cell's genetic information?ribosomemitochondriacytoplasmnucleus. MRS. HALE. Dutys all right, but I guess that deputy sheriff that came out to make the fire might have got a little of this on. (Gives the roller towel a pull.) Wish Id thought of that sooner. Seems mean to talk about her for not having things slicked up when she had to come away in such a hurry. a possible advantage of hearing this scene, as opposed to reading it silently, is that ;A. Readers can better visualize what each of the characters looks like.B. trivial lines of dialogue can be skipped without causing confusion.C. various sound effects can be used to create or enhance the mood.D. different lighting techniques can be used to heighten the conflict. Hector has his arms raised straight out to the sides. Which best describes the direction of the body?His arms are parallel to his torso.His arms are perpendicular to his torso.His arms are inferior to his torso.His arms are medial to his torso. What was the Regents Prayer? HELP ME PLEASE!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! :3I have to do what the image below says but I don't know how to write it:,) A rectangular room is covered in 5 12 square feet of carpet. If the length of the room is 16 feet,what is the width of the room? The one cost DVD is 16.98, and the cost of another DVD is 9.29. Ed estimated the cost of the two DVD to be about 27. Is his estimate higher or lower than the actual cost? Explain Why does Beatrice call Eddie an "angel" on page 9? Why does Eddie tell the Vinny Bolzano story on page 16? What is he trying to explain? What system of law is similar to the wergild What should people do when governments do not uphold their end of the SocialContract? Cells that become the _________ undergo a ____________ to __________ transition first. Fill in the blanks. Simplify by dividing -5/8 divided by -3/4 identify and explain a cause and effect relationship associated with the ideas or events in document 1 and 2 Which ordered pair or pairs are solutions to the equation? Select ALL that apply.Y-1= 1/6(x+5)A. (1,2)B.(1,-2)C.(5,0)D.(5,6) The United States agreed to pay all of its pre-war debts to England.True or False Simplify this expression. 17 - 12x - 18 - 5x = ?? Suppose you are considering voting for a presidential candidate from a minor party. Explain the benefits and drawbacks of casting your vote that way A jar contains 50 coins, all either 2 cents or 5 cents. The total value of the coins is $1.87.How many 2 cents coins are there? Jenny wants to buy a new dress for her first school dance she barrows $25.63 from her sister to help pay for the dress then Jenny earns $16.33 helping her dad organize his home office if she gives all the earnings to her sister Jenny will still owe her sister $ Given that BD is the median of ABC, and that ABC is isosceles,congruence postulate SSS can be used to prove which of the following?A. BAD = 45B. BAD BCDC. ABC is an equilateral triangleD. ABC BCD