Internal rate of return manzer enterprises is considering two independent investments: a new automated materials handling system that costs $900,000 and will produce net cash inflows of $300,000 at the end of each year for the next four years. a computer-aided manufacturing system that costs $775,000 and will produce labor savings of $400,000 and $500,000 at the end of the first year and second year, respectively. manzer has a cost of capital of 8 percent. the present value tables provided in exhibit 19b.1 and exhibit 19b.2 must be used to solve the following problems. required:

1. calculate the irr for the first investment. enter your answers as whole percentage values (for example, 16% should be entered as "16" in the answer box). between % and %. determine if it is acceptable or not.
2. calculate the irr of the second investment. use 12 percent as the first guess. enter your answers as whole percentage values (for example, 16% should be entered as "16" in the answer box). between % and %. comment on its acceptability.
3. what if the cash flows for the first investment are $250,000 instead of $300,000.

1. IRR for the first investment: 13%

2. IRR for the second investment: 10%

3. IRR for the first investment give changes in cash flow: 4%

Explanation:

IRR is the discount rate that will bring project's net present value to 0. Apply this, we will calculate IRR in each given scenario:

1. -900,000 + (300,000/IRR)/ [ 1 - (1+IRR)^-4] = 0 <=> IRR = 13%

2. -755,000 + 400,000/(1+IRR) + 500,000/(1+IRR)^2 = 0 <=> IRR = 10%

3. -900,000 + (250,000/IRR)/ [ 1 - (1+IRR)^-4] = 0 <=> IRR = 4%

(all the answers have been rounded to whole percentage values as required in the question).

both are integral parts of a corporate balance sheet. the cash flow statement, or statement of cash flows, measures the sources of a company's cash and its uses of cash over a specific time period. the income statement measures a company's financial performance, such as revenues, expenses, profits or losses over a specific time period (in fact, it's sometimes called a statement of financial performance).

a cash flow statement shows exactly how much money a company has received and how much it has spent, traditionally over a period of one month. it captures the current operating results and changes on the balance sheet, such as increases or decreases in accounts receivable or accounts payable, and does not include noncash accounting items such as depreciation and amortization. the cash flow generally comes from revenue received as a result of business activity, but it may be augmented by funds available as a result of credit. a cash flow statement is used to determine the short-term viability and liquidity of a company, specifically how well it is positioned to pay its bills and vendors.

c

explanation:

c because the item on a bank statement is also referred to as an account statement. in addition, it provides the beginning balance, ending balance, statement date, transaction date for each transaction, payee, customer name and address, statement period, the account holder's account number, and the bank's customer service number