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Mademuasel [1]
4 years ago
11

Technology Corp. is considering a $238,160 investment in a new marketing campaign that it anticipates will provide annual cash f

lows of $52,000 for the next five years. The firm has a 6% cost of capital. What should the analysis indicate to the firm's managers?(a) IRR is 8%. Accept the project.
(b) IRR is 3%. Reject the project.
(c) IRR is 4%. Reject the project.
(d) IRR is 6%. Accept the project.
Business
1 answer:
LUCKY_DIMON [66]4 years ago
4 0

Answer:

B) IRR is 3%. Reject the project.

Explanation:

We can use an excel spreadsheet to calculate the internal rate of return (IRR) for this investment:

we can use the IRR function =IRR(values,[guess])

where:

  • value 1 = -238160
  • value 2 to 6 = 52000
  • guess = optional, not required

=IRR(-238160,52000,52000,52000,52000,52000) = 3%

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Retained earnings:40)A)Generally consists of a company's cumulative net income less any net losses and dividends declared since
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Answer:

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Explanation:

Retained Earnings is the portion of the net earnings of a company that it does not pay as dividends to stakeholders. The corporation retains this money and reinvests it or uses it to pay off a portion of its debt. <em>Retained earnings are calculated by taking the retained earnings at the beginning of the period and adding the current year's net income. Then, net losses are subtracted. The final result represents the retained earnings of the period.</em>

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4 years ago
The crowding-out effect implies that restrictive fiscal policy will increase aggregate demand and employment. lead to a signific
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The crowding-out effect implies that restrictive fiscal policy will reduce real interest rates.

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4 0
3 years ago
Research indicates that 17 percent of consumers recognize the Flatfeet brand of athletic wear. If there are 30,000 consumers in
jenyasd209 [6]

Answer:

5,100 Consumers

Explanation:

The 17% of the total consumer recognize Flatfeet brand which means:

Consumers who recognize Flatfeet = Total Consumers * percentage of people that recognize the brand

Here

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And

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