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kirill115 [55]
3 years ago
15

Consider a project with the following cash flows: CF0=$100 million, CF1=$-60 million, CF2=$-60 million. Should you accept or rej

ect the project if the discount rate is 12%?
Business
1 answer:
MAVERICK [17]3 years ago
3 0

Answer:

Rejected

Explanation:

Given that

CF0 = $100 million

CF1 = $-60 million  

CF2 = $-60 million

Discount rate of return = 12%

So, the computation of the net present value is shown below:

Net present value = Initial investment - annual cash flows

where,

Annual present value

= Yearly cash flows × PVIFA factor for 12% at 2 years

= -$60 million × 1.6901

= -$101.406 million

And, the initial investment = $100 million

So, the net present value is

= $100 million  - $101.406 million

= -$1.406 million

Therefore, The project should be rejected

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Pick an ad that speaks out against drug abuse. Write about the possible primary and secondary effects of this ad on the youth in
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Answer: The National Youth Anti-Drug Media Campaign launched the “Above the Influence” (ATI) ad campaign in 2005. The campaign aims to provide young people with a different perspective on life. The campaign’s primary initiative is to reduce drug abuse among teenagers, not just by telling them about the harmful effects of drugs, but by helping them to counter bad influences (such as peer pressure) and believe in themselves. This campaign used print media, the Internet, television, and radio to communicate its message to teenagers.

The primary effects of this ad campaign on the youth in my locality were in terms of the immediate awareness that the ad’s message created. The campaign focused on improving lifestyles rather than just highlighting the bad effects of drugs, so it was able to connect with its target audience. Another key reason for the campaign’s success was the use of multiple media formats to communicate with the target audience.

An important secondary effect of this ad campaign was that it succeeded in spreading awareness about how peer pressure leads people into drug abuse. The campaign’s partnership with schools and other community groups helped to increase its effect on students in their early teens. Another secondary effect of the campaign was a decrease in the long-term use of marijuana and other illicit drugs among teenagers. The campaign managed to foster a feeling of independence and self-assurance among teens over the years.

The message of this ad campaign is still fresh in my mind. I’m sure it had a lasting effect on many others who heard it because it succeeded in building public awareness about the problem of drug abuse and in promoting a positive lifestyle.

Explanation:I got it of edmentum

3 0
3 years ago
To motivate employees, several major department stores are experimenting with incentive compensation plans, although compensatio
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Stores can make sure their employees are being incentivized when what they do benefits the customer and the store as a whole. Their main goal is to serve the customer because a happy customer comes back and refers their fiends. The employees can be rewarded on referral base actions, feedback cards and other ways that show management they are being honest and truthful to the customer. 
3 0
3 years ago
Norman Delivery Company purchased a new delivery truck for $36,000 on April 1, 2019. The truck is expected to have a service lif
ArbitrLikvidat [17]

Answer:

2019 = 2750

2020 = 5500

Explanation:

Given that:

Cost of truck = $36000

Salvage value = $3000

Useful life = 120, 000 miles

(Cost of asset - salvage value) / useful life

(36000 - 3000) / 120,000 = 0.275

2019 : 0.275 x 10,000 = 2750

2020 : 0.275 * 20000 = 5500

3 0
2 years ago
Who is the best image retouching service provider?
yawa3891 [41]

Answer:

ligma

Explanation:

4 0
2 years ago
You are an international shrimp trader. A food producer in the Czech Republic offers to pay you 2.2 million Czech koruna today i
fredd [130]

Answer: The value of this exchange is $8,816.05.

Explanation:

The problem is dealing with a simple case of arbitrage of exchange rates: Lets assume that

k = koruna

b = baht

Step 1:

Sales Revenue = k2,200,000

(To get USD amount : \frac{2,200,000}{25.36}=$86,750.7886

Purchase Cost = b3,200,000

(To get USD amount : \frac{3,200,000}{41.06}=$77,934.7297

Step 2:

Profit = Sales Revenue - Purchase cost

         = $86,750.7886 - $77,934.7297

         = $8,816.0589

The value of this exchange is $8,816.05.

4 0
3 years ago
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