Answer:
IRR= 14,96%
The firm should not accept the project, due o the fact that the internal rate of return is lower than the required return. (14,96%<16%)
Explanation:
The internal rate of return (IRR) is a metric used in capital budgeting to estimate the profitability of potential investments. The internal rate of return (IRR) rule is a guideline for evaluating whether to proceed with a project or investment. The IRR rule states that if the internal rate of return on a project or investment is greater than the minimum required rate of return, then the project or investment should be pursued. If it is lower than the cost of capital or required rate o return, the best course of action is to reject the project.
$0 = (initial investment x -1) + CF1 / (1 + IRR) ^ 1 + CF2 / (1 + IRR) ^ 2 + ... + CFX / (1 + IRR) ^ X
Initial Invesment= Total initial investment costs year x-1
CFx= Cash Flow during period X
IRR= Internal rate of return
Because of the nature of the formula, however, IRR cannot be calculated analytically and must instead be calculated either through trial-and-error or using software programmed to calculate IRR.
<u>In this case:</u>
IRR= -27200+ 11200/(1+IRR)^1 + 14200/(1+IRR)^2 + 10200/(1+IRR)^3
IRR= 14,96%
The firm should not accept the project, due o the fact that the internal rate of return is lower than the required return. (14,96%<16%)
The Federal Reserve System is the central bank of the U.S. It conducts monetary policy to manage inflation, maximize employment, and stabilize interest rates. The Fed supervises the nation's largest banks and provides financial services to the U.S. government. Hope this helps! Mark brainly please!
Franchising is the practice of paying a company to use its name, resources and operation systems.
Answer: D. Continue it"
Explanation: They do not have any legal reason to stop it, it is part of her right as a worker.
