The expresso roast corporation (erc) is considering expanding its product lines by acquiring mellow-man tea. the company’s founder is obscenely wealthy and will operate these lines for only one year before retiring and will therefore use only a one-year planning horizon. mellow-man tea has a cost of $80,000 and is expected to produce benefits in one year of $65,000. while this line is not as immediately profitable as the other alternative, it is estimated that this line could be sold upon the founder’s retirement in one year for $20,000. the health benefits of tea make this a less risky investment and erc’s cfo has recommended a risk-premium of 10%. all future cash benefits will occur at the end of the year. the rate of return on us t-bills is 4%. what is the irr for this investment? just enter the number and sign of your answer. give your answer in percents (do not use the percent sign).

Belstone, inc. is a merchandiser of stone ornaments. it sold 15,000 units during the year. the company has provided the following information: sales revenue $ 520,000 purchases (excluding freight in) 338,500 selling and administrative expenses 32,000 freight in 15,000 beginning merchandise inventory 43,000 ending merchandise inventory 58,500 how much is the gross profit for the year?

About time delivery co. incurred the following costs related to trucks and vans used in operating its delivery service: classify each of the costs as a capital expenditure or a revenue expenditure. 1. changed the oil and greased the joints of all the trucks and vans. 2. changed the radiator fluid on a truck that had been in service for the past four years. 3. installed a hydraulic lift to a van. 4. installed security systems on four of the newer trucks. 5. overhaul the engine on one of the trucks purchased three years ago. 6. rebuilt the transmission on one of the vans that had been driven 40,000 miles. the van was no longer under warranty. 7. removed a two-way radio from one of the trucks and installed a new radio with a greater range of communication. 8. repaired a flat tire on one of the vans. 9. replaced a truck's suspension system with a new suspension system that allows for the delivery of heavier loads. 10. tinted the back and side windows of one of the vans to discourage theft of contents.

Jaynet spends $50,000 per year on painting supplies and storage space. she recently received two job offers from a famous marketing firm – one offer was for $95,000 per year, and the other was for $120,000. however, she turned both jobs down to continue a painting career. if jaynet sells 35 paintings per year at a price of $6,000 each: a. what are her accounting profits? b. what are her economic profits?