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
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Answer:
The fact that Becky Bongos sales are falling continually even though they keep decreasing the price shows that <em>the underlying problem is not as a result of the customers' dissatisfaction with price</em>. The underlying problem can be any <em>other factors like not paying attention to customers' needs, poor quality of the commodity, lack of proper marketing, and the presence of a superior competition</em>. The solution is not the reduction of price but rather, a closer look should be paid to these other factors.
"A high-risk loan is a financing or credit product that is considered more likely to default, compared to other, more conventional loans."
I hope this helps ^-^
Answer:
A. Information published by the U.S. Bureau of the Census that identifies which regions of the United States are experiencing the most rapid growth in Mexican-American population.
Explanation:
As the restaurant is famous and serves the Mexican cuisine, it needs data that will provide information about the interests of people in Mexican Cuisine.
The information published by the US Bureau about the population of Mexican citizens growing will help the restaurant identify the areas where it will find its most probable customers for the Mexican Cuisine.
The census will provide the maximum information about the regions with the population with Mexican people as the chances to like Mexican cuisine is maximum with Mexican population.
