MacNamara Development Company Is Evaluating a Possible Investment in a Construction

question 92

Multiple Choice

MacNamara Development Company is evaluating a possible investment in a construction project. The cost will be $100,000, and it will generate cash flows as follows: The VP for construction believes this project has an internal rate of return somewhere in the range of 7% to 10%, but has asked the Controller to crunch the numbers. Using the trial and error method, and the PV factors shown here, determine what the IRR of this project is.
Choose the rate below which comes closest to the actual IRR.

• A)7%
• B)8%
• C)9%
• D)10%

Analyse the nature and impact of change within contemporary businesses.

Outline different types of organisational change and their objectives.

Understand the role of a manager as a change agent in the workplace.

Recognize the different targets for planned organizational change.

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Definitions:

Service Organizations

Companies offering non-physical services or products to their customers, rather than physical items.

Activity-Based Costing

A costing method that assigns overhead and indirect costs to related products and services based on their usage of resources.

Selling and Administrative Costs

Expenses related to the selling of products and the management of a business, exclusive of manufacturing costs.

Activity-Based Costing

A method in managerial accounting that assigns costs to products or services based on the activities that go into producing them.