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vitfil [10]
3 years ago
10

Mike Karanikolas wants to enter the French market with his usual strategy of using influencers. Two influencers are considered t

o be hired.
The first one is a young growing personality and asks for a consideration of 100 000€ to be paid at the start of the contract, and Mike determines that over 4 years, this particular influencer would yield successively each year: 20 000€, 30 000€, 40 000€, 50 000€. Those amounts would be actualised at a 10% rate to take risk into account.
Is it a good investment? Answer to this question based on two selection criteria: Net Present Value and Internal Rate of Return.

The second influencer is more stable and is asking for the same 100 000€ consideration, but revenues would be more stable at 35 000€ every year at the end of the next 4 years.
Is the second influencer a better choice than the first influencer? Answer to this question based on the NPV criterion.

Business
1 answer:
ratelena [41]3 years ago
3 0

Answer:

A) Based on NPV, Mike will choose 2nd influencer.

B) Based on IRR, Mike will choose 2nd influencer.

Explanation:

See images to get the appropriate answer:

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Concord Corporation reported net income of $177,200 for 2017. Concord Corporation also reported depreciation expense of $35,230
klio [65]

Answer

Net income 177,200

+35230 depreciation

+4,920 loss on disposal

217,350 adjusted net income (a)

↑↓

↑AR -14,160

↑Prepaid -4,190

↑AP 17,220

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<u />

<u>Cash Flow generated from operating activities 216,220</u>

<u />

Explanation:

(a) we must remove the non-monetary account from the income statement

This means add the non-monetary expenses and losses

Subtract the non monetary revenue and gains

(b)

The increase in assets account have a negative meaning, because it is assumed the company used cash to adquire it.

Whiel increase in liabilities are positive, because the company receive aah or delay the payment of cash.

4 0
3 years ago
As manager of Kids Skids, Meghan wants to develop her relationship management skills. In order to do this, she learns how to
larisa86 [58]

As manager of Kids Skids, Meghan wants to develop her relationship management skills. In order to do this, she learns how to communicate better with other people, learn about different learning styles, understand diversity and how it pertains to relationship building. By learning skills and focusing on how her communication skills very based on different people are, she is likely to become a better leader. When Meghan understands how to be an effective leader and use her management skills, she will have a better flow in the workplace.

3 0
3 years ago
Which of the following is good for our economy?
Otrada [13]

Answer:

Stable prices

Explanation:

Stable prices created a structured economy without residents having to constantly adapt to deflation, inflation etc.

8 0
3 years ago
Jennifer’s Boutique has 2,100 shares outstanding at a market price per share of $26. Sally’s has 3,000 shares outstanding at a m
goldenfox [79]

Answer:

c. $57,100

Explanation:

The computation of the value of Jennifer’s Boutique to Sally is shown below:

= (Number of shares outstanding ×  market price per share) + (incremental value of the acquisition)

= 2,100 shares ×$26 + $2,500

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We simply find out the market value and then added it to the incremental value of the acquisition

All other information which is given is not relevant. Hence, ignored it

4 0
3 years ago
In a(n) _____ policy approach, a company that collects information does not use the information for any other purpose unless the
Anna71 [15]

Answer:

Opt in

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