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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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At the beginning of 2021, Angel Corporation began offering a two-year warranty on its products. The warranty program was expecte
BartSMP [9]

Answer:

$9.7 million

Explanation:

The amount of warranty expense on Angel's 2021 income statement = Net sales x 5%

= $194 million x 5%

= $9.7 million

Thus, the amount of warranty expense on Angel's 2021 income statement will be $9.7 million

7 0
4 years ago
Which statement BEST explains the economic concept of quantity demanded?
Deffense [45]
Answer:

C. It is influenced by changes in price.
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3 years ago
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Where should you be on the focus-chaos scale to benefit from this course?
Y_Kistochka [10]

Based on the focus-chaos scale, to benefit from any course, you have to be on the left side of the scale.

<h3>What is the focus-chaos scale?</h3>

This is a scale that is used to describe the focus and planning attribute of different types of people.

The people on the left are in the focus section and then to organize their lives well and embarked on planned activities. Youl'll have to lean towards this side to benefit from most courses as they require you to be organized in your learning.

The right side has the chaotic people who may not be organized, but someone find a way to live life successfully. It is harder to pass courses using this.

The complete question wasn't given so I gave a general discussion.

Find out more on the benefits of planning ahead at brainly.com/question/22829786

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8 0
2 years ago
XYZ Company is new to marketing research and wants to gain business quickly. They put in what seems to be an unrealistic bid on
rjkz [21]

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false promises

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the keyword was unrealistic,because their trying to add additional fees.

6 0
3 years ago
When a large, well-known corporation wishes to borrow directly from the public, it can
Hatshy [7]

Answer: The correct answer is choice b.

Explanation: When a company is looking to borrow money from the public, the only correct answer is choice b, sell bonds.

Going to a bank for a loan is incorrect because this would be borrowing from a bank, not the public. Selling shares of stock is incorrect because the buyers would be buying ownership in the company, they would not be loaning the business money.

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3 years ago
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