Datta Computer Systems is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's projected IRR can be less than the WACC (and even negative), in which case it will be rejected. Year 0 1 2 3 Cash flows -$1,050 $450 $470 $490 ?
A. 12.69%
B. 13.98%
C. 15.58%
D. 18.15%
E. 16.07%
Answer: E
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a. True b. False Indicate whether the statement is true or false
Kawamura Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During December, the kennel budgeted for 2,300 tenant-days, but its actual level of activity was 2,320 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting: Fixed Element per MonthVariable Element per Tenant-DayRevenue - $37.70 Wages and salaries$3,000 $6.10Food and supplies 800 13.40Facility expenses 9,800 4.70Administrative expenses 7,100 0.20Total expenses$ 20,700 $ 24.40The wages and salaries in the planning budget for December would be closest to:
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