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Agata [3.3K]
3 years ago
15

Suppose an investment will have an initial positive cash flow of $100,000 in year 0, followed by a negative cash flow of $110,00

0 in period 1. Thus, the IRR of the project is 10%. Should we accept or reject the project if the required return is 15%?
Business
1 answer:
laiz [17]3 years ago
3 0

Answer: Reject the Project

Explanation:

If the required return (also known as hurdle rate) is 15% (which is above the Internal Rate of Return of 10%) then the project or investment is less profitable.

The required return is the minimum return that will repay initial investment and other input.

Since the actual or eventual rate of return (IRR) is less than this required minimum, the project should be rejected.

On the other hand, if the investor has no alternative project to invest in or if the investor no time constraints, he or she can wait to see the Internal Rate of Return in succeeding periods or years like Period 2, Period 3, etcetera.

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Each of the four major professional men's team sport leagues in the United States earn at least $1 billion annually through e-co
oee [108]

A huge amount of money is made in sports revenue through e-commerce and the information illustrated about the four teams is true.

Electronic commerce simply means the buying and selling of goods or services through the transmission of funds over the internet.

In the national football league, about $13 billion is generated through electronic commerce. Each of the four major professional men's team sport leagues in the United States earn at least $1 billion annually through e-commerce. These include the Dallas cowboys, New York Yankees, etc.

Read related link on:

brainly.com/question/25811481

5 0
3 years ago
LO 5.5In a process costing system, which account shows the overhead assigned to the department?
Elina [12.6K]

Work in process inventory

Explanation:

The overall costs assigned to the department is shown in a costing system for "work in the process inventory"

Work in the process stock shows all costs of the product manufacture and the applicable overhead is also charged to the process stock account.

With goods at various stages of the production process, the WIP applies to the raw materials, the work and overhead costs involved. WIP is part of the balance sheet inventory asset account. These costs will then be converted to the finished product account and ultimately to sales costs.

5 0
3 years ago
A life insurance policyowner would like a dividend option that results in a limited current outlay of funds. Which divident opti
yan [13]

Reduction of premium payment would be chosen.

This enables the policyholder to deduct policy dividends from the premium for the next year. Consequently, it will be simpler for the policyholder to pay her subsequent premium.

<h3>What is a dividend?</h3>

A dividend is a cash paid to you by your life insurance provider. This typically signifies that you have a participating policy contract, commonly known as a whole life insurance policy that pays dividends. You receive dividend payments from that company when it is profitable, rewarding your investment. You have the option of receiving this money through dividend options.

<h3>Converting Your Dividend Into Premium</h3>

This dividend option for life insurance is quite simple. If selected, your insurance provider will just use your payout to cover all or a portion of your yearly payment. If you select this option and your dividend is greater than your premium, you might also need to select a secondary alternative. On the other hand, you will need to make the remaining payments as usual if your dividend is less than your premium.

You must begin paying your premium on an annual basis if you decide to use your payout toward it. For instance, you would still need to pay the remaining $6,500 all at once if your annual premium was $8,000 and your dividend was $1,500. You may pay more or less of your premium each year depending on how the dividends change over time.

Learn more about reduction of premium here:

brainly.com/question/13237769

#SPJ4

7 0
2 years ago
What 4ps known as ?
emmainna [20.7K]

Answer:

4 P's are place, price, product, and promotion

Explanation:

The four P's of marketing are the key factors that are involved in the marketing of a good or service. They are the product, price, place, and promotion of a good or service.

4 0
3 years ago
In the theory of deregulation economics, cutting taxes allows people to save more money. Banks then loan that money to businesse
telo118 [61]
True

this never works in practice though
3 0
4 years ago
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