labour budgets

For every 100 hours that we pay for, 20 hours will be idle, and therefore 80 hours will be worked. (Or to put it the other way round - if we want 80 hours work, then we need to pay for 100 hours). So.....for 2400 hours work, we need to pay for 2400 x 100/80 hours. We will pay then at $10 per hour.

Thank you so much Sir. Sir i'm also having problems with test no 2 in investment appraisal: A company is considering investing in a new machine that will cost $270,000 and will last for 4 years with a scrap value at the end of 4 years of $20,000. It is expected to generate operating cash inflows each year as follows: Year 1: $50,000 Year 2: $180,000 Year 3: $100,000 Year 4 $50,000 The cost of capital is 12% per annum. What is the Internal Rate of Return of the machine (to the nearest %)? Actually i cannot understand from where you got discounting as 20%

Please start a new thread when it is a different question. To calculate the IRR you need to make two guesses and then approximate between them. Here, one of the guesses was at 20%, but any guess will do. (It would be a good idea to watch my free lecture on calculating the IRR)