You want to start an organic garlic farm. the farm costs $190,000, to be paid in full immediately. year 1 cash flows will be $25,000, and grow at 5% a year into year 5 when you decide to sell the farm at the end of the year for $260,000 (in year 5 you get cash flows from selling both the garlic and the farm). assuming these estimates are all correct, what is the irr of the garlic farm investment? round to the tenth of a percent (e. g. 5.6%=5.6). [hint: you'll want to solve this in excel using the irr function or goal seek. make sure the irr cell is set to show decimals.]

Amachine purchased three years ago for $720,000 has a current book value using straight-line depreciation of $400,000: its operating expenses are $60,000 per year. a replacement machine would cost $480,000, have a useful life of nine years, and would require $26,000 per year in operating expenses. it has an expected salvage value of $130,000 after nine years. the current disposal value of the old machine is $170,000: if it is kept 9 more years, its residual value would be $20,000. calculate the total costs in keeping the old machine and purchase a new machine. should the old machine be replaced?

Ardmore farm and seed has an inventory dilemma. they have been selling a brand of very popular insect spray for the past year. they have never really analyzed the costs incurred from ordering and holding the inventory and currently fave a large stock of the insecticide in the warehouse. they estimate that it costs $25 to place an order, and it costs $0.25 per gallon to hold the spray. the annual requirements total 80,000 gallons for a 365 day year.a. assuming that 10,000 gallons are ordered each time an order is placed, estimate the annual inventory costs.b. calculate the eoq.c. given the eoq calculated in part b., how many orders should be placed and what is the average inventory balance? d. if it takes seven days to receive an order from suppliers, at what inventory level should ardmore place another order?

You hear your supervisor tell another supervisor that a fire drill will take place later today when the fire alarm sounds that afternoon you should