1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Greeley [361]
1 year ago
9

What is the irr of an investment that costs $18,500 and pays $5,250 a year for 5 years?

Business
1 answer:
saveliy_v [14]1 year ago
6 0

The Internal rate of return (IRR) of an investment is found to be 13%.

<h3>What is Internal rate of return (IRR)?</h3>

The internal rate of return (IRR) is a financial analysis metric used to estimate the profitability of possible investments.

  • In a discounted cash flow analysis, IRR is a discount rate that renders the net present value (NPV) among all cash flows equal to zero.
  • IRR calculations employ the same method as NPV calculations.
  • Keep in mind that the IRR is not the project's actual dollar value.
  • The annual return is what brings the NPV to zero.

Now, according to the question;

Total investment = $18,500.

Returns = $5,250/year

Time = 5 years

Use the formula for calculation of IRR value.

$18,500 = $5,250 {[1 - 1/(1 + IRR)5] / IRR}

Simplyfying,

IRR = 12.92%

Therefore, the internal rate of returns are calculated as 13% (approximately).

To know more about internal rate of return, here

brainly.com/question/13373396

#SPJ4

You might be interested in
Which action is an example of a consumer making a purchase through a direct marketing arrangement?
Vladimir [108]

By providing customers with a direct line to vendors through the mail, phone, or computer, direct marketing enables them to make purchases from the comfort of their own homes or places of employment. Telemarketing, catalog sales, online shopping, and direct mail are a few examples of direct marketing.

<h3><u>What Is Direct Marketing?</u></h3>

Direct marketing is any form of advertising that reaches out to customers directly, as opposed to going through an intermediary like the media. Campaigns using text messaging, social media, email, and the postal service are some of the delivery techniques used. Direct marketing is called that because it frequently eliminates the middlemen, such as the media.

<u>The Workings of Direct Marketing</u>

In contrast to traditional public relations efforts that broadcast information through a third party, like media outlets or mass media, direct marketing initiatives operate autonomously to engage with target audiences.

In direct marketing, businesses employ social media, email, postal, phone, and SMS campaigns to disseminate their content and make sales pitches. Direct marketing frequently attempts to personalize the message by inserting the recipient's name or city in a prominent area in order to boost interaction, despite the occasionally enormous volume of communications distributed.

Learn more about marketing with the help of the given link:

brainly.com/question/23867900

#SPJ4

4 0
1 year ago
You have been asked to analyze the Value Net of the craft brewing and distilling industries in your state, and you have observed
RUDIKE [14]

Answer:

The answer is: Complementary goods and services

Explanation:

Complementary goods and services are used with another good or service. For example, sugar is complementary to coffee, fuel is complementary to cars, etc.

Usually when the price or the quantity demanded of a complementary good or service changes, the other complementary good will be affected.

In this question, we are told that restaurants and lodging facilities are complementary to beer. So if the price of beer decreases (increasing the quantity demanded), the demand for restaurants and lodges will increase.

5 0
3 years ago
Define the following:<br> 1. Allocation of resources<br> 2. Economic system<br> 3. Market economy
denis-greek [22]
  1. Allocation of resources is the assignment of available resources to various uses.
  2. Economic system is a system of production, resource allocation and distribution of goods and services within a society or a given geographic area.
  3. Market economy is an economic system where supply and demand, direct the production of goods and services.
8 0
2 years ago
Read 2 more answers
Kevin, who has liability limits of $20,000/$40,000/$20,000 and a $500 collision deductible, is involved in an accident. Due to h
harina [27]

Answer:

Amount to pay by PAP = $39,600

Explanation:

The liability limits of $20,000/$40,000/$20,000 implies that the highest amount PAP will pay for driver's injuries is $20,000, while the highest to pay for the first of two passenger is $40,000 and $20,000 for second passenger.

Since the a passenger received injuries worth $12,500, and another passenger received injuries of $7,100, the PAP will the actual amount and $20,000 for the driver's injuries. The total can therefore be calculated as follows:

Amount to pay by PAP = $20,000 + $12,500 + $7,100 = $39,600

4 0
3 years ago
In enterprise systems, supply chain management is tied to the conversion of ______ to finished product
Sveta_85 [38]

In enterprise systems, supply chain management is tied to the conversion of raw materials to finished product.

<h3>What are raw materials?</h3>

This are materials that are used in production process to manufacture a product.

Raw materials are often transformed to finished product that is purchased by consumers.

Supply chain monitor the activity of converting raw material to finished product.

Therefore, In enterprise systems, supply chain management is tied to the conversion of raw materials to finished product.

Learn more on supply chain below,

brainly.com/question/13297496

#SPJ12

3 0
1 year ago
Other questions:
  • The fed buys $5 billion worth of treasury bonds on the open market
    11·1 answer
  • Zingerman's deli operates seven retail stores throughout the city. It plans to develop a new marketing plan to extend its number
    10·1 answer
  • The market analyst of a chain megastore bakery, called More Dough, asks you to find out why people are choosing to go to smaller
    14·1 answer
  • A local pizzeria sells 500 large pepperoni pizzas per week at a price of $20 each. Suppose the owner of the pizzeria tells you t
    8·1 answer
  • The accounting manager of Gateway Inns has noted that every time the inn's average occupancy rate increases by 3.3 percent, the
    10·1 answer
  • The most effective query to find out who won the World Series in 2010 is _____.
    13·2 answers
  • Thyme Co. has office furniture that cost $53,400 . Thyme’s managers can either sell the office furniture in its current state fo
    8·1 answer
  • The higher the forgetting rate associated with a brand, product category, or message, the lower the warranted level of repetitio
    10·1 answer
  • The chart shows a sample budget.
    12·2 answers
  • Determine a formula for the capacitance in terms of K1 , K2 , the area A of the plates, and the separation d . [Hint: Can you co
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!