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Savatey [412]
3 years ago
15

Modern Federal Bank is setting up a brand-new branch. The cost of the project will be $1.2 million. The branch will create addit

ional cash flows of $235,000, $412,300, $665,000 and $875,000 over the next four years. The firm's cost of capital is 12 percent. What is the internal rate of return on this branch expansion
Business
1 answer:
KonstantinChe [14]3 years ago
3 0

Answer:

23.12%

Explanation:

Internal rate of return (IRR) is the rate at which the Net present value (NPV) of a project equals to zero.

Using a financial calculator and the CF function, input the following to find IRR;

Initial investment; CF0 = -1,200,000

Yr1 cashflow inflow ; C01 = 235,000

Yr2 cashflow inflow ; C02 = 412,300

Yr3 cashflow inflow ; C03 = 665,000

Yr4 cashflow inflow ; C04 = 875,000

Then key in IRR CPT = 23.119%

Therefore, the Internal rate of return this expansion is 23.12%

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If the current allocation of resources in the market for wallpaper is efficient, then it must be the case that
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Answer:

b. the market for wallpaper is in equilibrium.

Explanation:

Efficient allocation of resources means that the cost to produce the last unit of wallpaper and the benefit from that unit equals.

It must be the case that the cost of obtaining the product (which is equal to the benefit to the buyers) is the same as the cost of producing the product. That is the price.

The quantity where demand and supply meets in the equilibrium quantity (supply curve intersect demand curve)

That's the market equilibrium, where the price and quantity that buyers are willing to buy and suppliers are willing to sell is the same.

5 0
3 years ago
"Integrated marketing communications represents the _________________ P in the four Ps of a firm's marketing mix. "
lozanna [386]

Answer:

Promotion

Explanation:

The four Ps of of the marketing mix are Pricing, Promotion, Place, and Product.

Integrated marketing communications is part of promotion.

Promotion is defined as the act of increasing awareness about a product or service to the target market with a view of increasing sales. It involves communication beneficial information of a product to the buyer.

Integrated marketing communications which is the process of employing all promotional tools to work in harmony.

Therefore it represents promotion in the marketing mix

6 0
3 years ago
On January 1, 2021, Calloway Company leased a machine to Zone Corporation. The lease qualifies as a sales-type lease. Calloway p
Delicious77 [7]

Answer:

DR Interest receivable                                  26,400

CR Interest revenue                                                       26,400

Explanation:

As first lease has already been paid, the amount left of the lease is;

= 280,000 - 40,000

=$240,000

Interest is 11% so the interest to be received in December is;

= 11% * 240,000

= $‭26,400‬

This will be debited to Interest receivable as it is money owed and credited to Interest revenue as it is money earned.

6 0
3 years ago
Ford Motor Corporation is considering purchasing new technology that will increase productivity by twenty percent. If Ford Motor
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Answer:

E. The demand for loanable funds increases.

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What types of supply chain strategies are required for food and rose supply chains?
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Answer:

supply chain is a system of organizations, people, activities, information,

Explanation:

hope that works

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