1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Debora [2.8K]
3 years ago
7

Thompson Manufacturing is considering two investment proposals. The first involves a quality improvement project, and the second

is about an advertising campaign. The cash flows associated with each project appear below:
Quality Improvement Advertising Campaign
Intial cash inflow 100,000 100,000
Cash inflows
Year 1 10,000 80,000
Year 2 30,000 45,000
Year 3 125,000 10,000
Suppose the hurdle rate of the firm is 10%. Calculate the cash inflows of the "incremental project" by subtracting the cash flows of the second project from the cash flows of the first project. What is the IRR of the incremental project?
Business
1 answer:
Burka [1]3 years ago
5 0

Answer:

17.9%

Explanation:

The computation of the internal rate of return of the project is shown below;

Year  0          0

Year 1        -70,000 ($10,000 - $70,000)

Year 2       -15,000 ($30,000 - $45,000)

Year 3       115,000 ($125,000 - $10,000)

Let us assume r represent the IRR of the incremental project.

so,  

-$70,000 ÷ (1+r) - $15,000 ÷ (1+r)^2 + $115,000 ÷ (1+r)^3 = 0

r = 17.9%

You might be interested in
The section of your Career Builder Files that contains documents that you will share with others, especially during interviews,
Marat540 [252]

Answer:

Master Career portfolio

Explanation:

A career builder file is system used to collect and organise one's career history and job search. It gives the prospective employer a snapshot of the candidate's professional life so far.

Career builder is made up of 3 parts:

- About me contains opinions about jobs, information about you, and awards.

- About jobs contains job research, contacts, application drafted, and resume

- Master career portfolio contains final resume, samples of work, and thank you notes

The master career portfolio shows a summary of your profesional experience and what you can offer. That is the document that should be shown to others especially at interviews

6 0
4 years ago
SELECT ALL THAT APPLY
chubhunter [2.5K]

income tax

traffic tickets


8 0
3 years ago
Read 2 more answers
A tax that imposes a small excess burden relative to the tax revenue that it raises is.
stiv31 [10]

A tax that imposes a small excess burden relative to the tax revenue that it raises is an <u>efficient tax.</u>

<h3><u>What Exactly Is Tax Efficiency?</u></h3>

The least amount of taxes that are legally required to be paid by a person or a corporation is known as tax efficiency. When a financial choice results in a lower tax bill than a competing financial structure that serves the same purpose, the choice is said to be more tax-efficient.

<u>Tax-Advantaged Mutual Fund</u>

Another approach to lower tax obligations is to invest in a tax-efficient mutual fund, particularly for taxpayers without access to a tax-deferred or tax-free account. In comparison to other mutual funds, a tax-efficient mutual fund is taxed at a reduced rate. Compared to the standard mutual fund, these funds often produce lower rates of returns through dividends or capital gains.

Mutual funds that provide little to no interest income or dividends include small-cap stock funds and passively managed ones, including exchange-traded funds (ETFs) and index funds.

Learn more about the efficient market with the help of the given link:

brainly.com/question/22597940

#SPJ4

7 0
2 years ago
Give two examples of careers in each of the three work type categories: people, data, things. Include one task performed in each
jekas [21]

Explanation:

mathematics and singing

6 0
3 years ago
Read 2 more answers
What is the amount you can withdraw at the end of 20 years if you make $1,500 monthly deposit at a nominal annual rate of 6% com
musickatia [10]

Answer:

$693,061.34 (±6,500)

Explanation:

4 0
3 years ago
Other questions:
  • If Firm A acquires Firm Z when firm Z has a book value of assets of $150 million and a book value of liabilities of $30 million.
    12·1 answer
  • The economy of Elmendyn contains 3,000 $1 bills.
    15·1 answer
  • Exercise 8-5A Determining flexible budget variances LO 8-4 Benson Manufacturing Company established the following standard price
    14·1 answer
  • Dawn, a young single mother, found a wallet with a large amount of money inside. she has found lost wallets in the past, too. pr
    12·2 answers
  • A vacant lot acquired for $115,000 is sold for $298,000 in cash. What is the effect of the sale on the total amount of the selle
    15·1 answer
  • All parties in the chain of​ _____ of a defective product are​ _____ liable for the injuries caused by that product.
    8·1 answer
  • Three of the steps in management's decision-making process are: (1) Review results of decision, (2) Determine and evaluate possi
    7·1 answer
  • How to build a $100 million business
    6·1 answer
  • When the price of a product increases, a consumer is able to buy less of it with a given money income. This describes the
    12·1 answer
  • which area(s) represent the amount of consumer surplus domestic consumers will enjoy after the tariff has been imposed?
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!