Answer:
See below
Explanation:
Net income during the year
$59,000
Adjustments:
Depreciation
$27,000
Changes in current assets and liabilities
Less:
Increase in accounts receivables
($32,000)
Increase in inventories
($12,000)
Decrease in accounts payable
$25,000
Net cash flow from operating activities
$17,000
Answer:
8%
Explanation:
Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested
IRR can be calculated with a financial calculator
Cash flow in year 0 = $-300
Cash flow each year from year 1 to 4 = × $300 = $24
Cash flow in year 5 = $300 + 24 = $324
IRR = 8%
To find the IRR using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.