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Over [174]
3 years ago
7

A firm is considering an investment in a new advertising project. The project will produce a cash flow of $1,000 in one year and

it will produce a cash flow of $15,000 two years from now. The firm has a required return of 11%. You are the manager of the advertising department and you estimate that the cost of this project is $13,000 today. Do you recommend that the firm accept this project
Business
1 answer:
timofeeve [1]3 years ago
6 0

Answer:

The fact the investment opportunity has a positive cash flow means that the project should be accepted since it is value-adding

Explanation:

We can evaluate the acceptability of the project using the net present value approach. The net present value is the present value of future cash flows discounted at the 11% required rate of return.

Present value=future cash flow/(1+required rate of return)^n

n is the year in which the cash flows are expected, it is 1 for year 1 cash flow and 2 for year 2 cash flow

NPV=$1,000/(1+11%)^1+$15,000/(1+11%)^2-$13,000

NPV=$75.24

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Because consumers associate a drug's price with potency, some pharmaceutical companies use the _____ strategy to price their ove
sleet_krkn [62]
<span>Some pharmaceutical companies use the symbolic or prestige pricing strategy to price their OTC drugs. They do this because many consumers see a price and assume the potency of the drug on the dollar amount--something more expensive is assumed to be more potent. Symbolic/prestige pricing assumes high prices equal high quality in the minds of consumers.</span>
7 0
3 years ago
When a municipal bond has a net revenue pledge, what is the first item that gets paid from the revenue received
Mumz [18]

Answer: Operations and maintenance

Explanation:

A municipal bond, is simply a bond that is issued by a either a territory, its agency or the local government, to help finance public projects like infrastructure, airports, roads, schools, and seaports.

Therefore, when a municipal bond has a net revenue pledge, the first item that gets paid from the revenue received will be for Operations and maintenance.

3 0
3 years ago
Jenny is the CEO of a company that has been affected by an econonmic meltdown. She realizes that the only way for her company to
elena55 [62]

Answer:

a. rule-utilitaria

Explanation:

According to my research on different business tactics and perspectives, I can say that based on the information provided within the question her approach is primarily influenced by rule-utilitarian. This term refers to a form of utilitarianism in which an action is right if it strives and focuses on the greater good. Which in this case is what Jenny is doing, since even though the decision to cut wages is bad, it is still viewed as good because it is a greater good.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

7 0
3 years ago
________ argues that ________.Rico Raines; starvation in many parts of the world could be avoided with adequate price controls A
Elden [556K]

Answer:

Amartya Sen; famines don't happen in democracies.

Explanation:

Amartya Sen, the Indian economist, winner of the Nobel Price of Economics in 1998, said this famous quote after completing extensive research on the topic of famine.

Amartya Sen argues that because in democracies, the governments have to be elected, they have an incentive to avoid famines since a famine is a political catastrophe (and a humanitarian one) that would effectivelly prevent any ruling party from being elected again if a famine takes place under its administration.

6 0
3 years ago
Nov. 1 Dollar Store purchases merchandise for $1,600 on terms of 2/5, n/30, FOB shipping point, invoice dated November 1. 5 Doll
leonid [27]

Answer:

NOV 1

Inventory 1,600

Account Payable 1,600

Nov 5

Account Payable 1,600

Discount received  32

Cash 1,568

Nov 7

Cash 100

Inventory 100

Nov 10

Freight In 80

Cash 80

Nov 13

Account receivable 1,728

Sales Revenues 1,728

Nov 13

COGS 864

Inventory 864

Nov 16

Sales Revenue 200

Account receivable 200

Nov 16

Inventory 100

COGS 100

Explanation:

The changes in inventory valuation must be done imediatly under perpetual inventory system.

4 0
3 years ago
Read 2 more answers
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