Answered: he irr of the project is 12% and the…

he irr of the project is 12% and the present value of operating cash flow is $ 22000 the life of the project is 6 years and fixed is $ 2000 per year

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

Question

The irr of the project is 12% and the present value of operating cash flow is $ 22000 the life of the project is 6 years and fixed is $ 2000 per year compute the financial breakven unit the contribution margin is $20

Definition Definition Discount rate of a project wherein its net present value equals zero. Internal rate of return equates the present value of future cash flows with the initial investments. Internal rate of return helps to determine nominal cash flows.

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