Answer:
the project's MIRR is 13.50 %.
Explanation:
MODIFIED INTERNAL RATE OF RETURN (MIRR)
-It is the rate that causes the Present Value of the Terminal Value (Future Cash flows at the end of the Project) to equal Present Value of Cash outflows.
-MIRR assumes a reinvestment rate at the end of the project
The First Step is to Calculate the Terminal Value at end of year 3.
Terminal Value (FV) = Sum of (PV x (1 + r) ^ 3 - n)
= $350 x (1.11) ^ 2 + $350 x (1.11) ^ 1 + $350 x (1.11) ^ 0
= $431.24 + $388.50 + $350.00
= $1,169.74
The Next Step is to Calculate the MIRR using a Financial Calculator :
(-$800) CFj
0 CFj
0 CFj
$1,169.74 CFj
Shift IRR/Yr 113.50 %
Therefore, the MIRR is 13.50 %
Answer:
Marjam's entry to record this transaction should include a c. Credit to Long-Term investments for $63,600.
Explanation:
Marjam investment in MacKenzie is a Financial Asset. A financial Asset is an obligation to receive cash.
Marjam will be paid a cash dividend based on the share of ownership it has in MacKenzie.
Share of Ownership = 63,600 shares/ 120,000 outstanding shares
= 53%
<u>Marjam's entry to record cash dividends is as follows </u>
Dividend = $120,000 × 53%
= $63,600
Debit : Bank $63,600
Credit : Long-Term investments $63,600
Answer:
B) experimentation.
Explanation:
Experimentation is the process by which a business strategy is tested on a smaller scale before it is adopted on a wider scale. A business process or product can be introduced to a particular test group and based on the results extrapolated to other areas.
In this scenario Cami the marketing manager for a regional furniture maker monitors each marketing campaign on overall sales. She also tries novel promotional offers to first time customers in a bid to test efficacy. This is use of experimentation.
