STR 581 help A Guide to career/uophelp.com STR 581 help A Guide to career/uophelp.com | Page 10

21 Darrin Corporation is considering a proposal to purchase a new piece
of equipment. The cost of the equipment is $16,611. The equipment is
estimated to provide an annual cash flow of $3,000 for the next nine
years. The company has a required rate of return of 15%. Calculate the
internal rate of return (IRR), and interpret the results. Use the present
value of an annuity table.
• Since the cash flows are evenly distributed, the proposal should be
accepted.

• Since the IRR is lesser than the required rate of return, the proposal
should be rejected.

• Since the capital investment is higher than $15,000, the proposal
should be rejected.
• Since the IRR is greater than the required rate of return, the proposal
should be accepted.
22 Calculate the total equivalent units for materials from the information
given below.
Percentage complete
Units Materials Conversion
Work in process, June 1 1,100 60% 35%
Units started into production during June 22,500
Units completed and transferred to the next department 21,800 100%
100%
Work in process, June 30 1,800 50% 15%
A. 2,070

B. 23,400

C. 22,700

D. 21,260
23 Bob is a project leader in a software company. He assigns tasks to his
team members, explains how to execute the tasks, and sets weekly goals
for them. He convenes meetings to discuss the progress of projects at