Answer:13.74%
No
Explanation:
The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.
Using a financial calculator to find the IRR :
Cash flow for year zero = $-38,000.
Cash flow for year one = $ 19,000
Cash flow for year two = $17,000
Cash flow for year three = $12,000
IRR = 13. 74%
If the cost of capital is 14%, the equipment shouldn't be purchased because the IRR is less than the cost of capital.
I hope my answer helps you.
Dunkin Donuts' actions of taste testing, research, and consumer feedback represent 'Market Research'. This process helps them collect and analyze data about consumer preferences, trends, and competition, thereby assisting them in making informed product decisions.
In the context of Dunkin Donuts' actions, this represents Market Research. Market Research is the process of gathering and analyzing data about the market, including information about customer preferences, trends, and competing products. For a company like Dunkin Donuts, this helps to ensure that they are meeting consumer demand, staying ahead of trends, and maintaining a competitive edge in the donut and coffee market. For example, they might survey customers about their preferred donut flavors, or test new product offerings in select locations to see how they perform. Based on the feedback, they make decisions on what to offer on a wider scale.
Answer:
Cleans current ratio is = 2.71
Explanation:
The current ratio is a liquidity ratio that measures whether a firm has enough resources to meet its short-term obligations.
Current asset is any asset which can reasonably be expected to be sold, consumed, or exhausted through the normal operations of a business within the current fiscal year or operating cycle.
Current liabilities are often understood as all liabilities of the business that are to be settled in cash within the fiscal year or the operating cycle of a given firm, whichever period is longer.
Current ratio = current assets ÷ current liabilities.
From the question above;
Current assets;
Cash $600
Account receivable $900
Office supplies $400
Total $1900
Current liabilities;
Account payable $500
Salaries payable $200
Total $700
Current ratio = 1900 ÷ 700
Current ratio = 2.71
Answer:
Price of stock=$ 77.88
Explanation:
The Dividend Valuation Model is a technique used to value the worth of an asset. According to this model, the worth of an asset is the sum of the present values of its future cash flows discounted at the required rate of return.
The price of the stock will the sum of the present value of the growing annuity and the growing perpetuity
Present value of dividend from year 1 to 8
The PV of the growing annuity = A/r-g) ( 1- (1+g)/(1+r)^n )
A- dividend payable now , r- required of return, g-growth rate, number of years
PV = (2.30×1.23)/(0.15-0.23)× (1- (1.23/1.15)^8) = 25.199
PV of Dividend from year 9 and beyond:
P = D× g/(r-g)
This will be done in two steps:
Step 1: PV(in year 8)of dividend = 2.30× 1.23^8×1.07/(0.15-0.07) = 161.16
Step 2 : PV in year 0 = 161.16× 1.15^(-8)= 52.684
PV of Dividend from year 9 and beyond = 52.684
Price of stock = 25.19 + 52.68= 77.88
Price of stock=$ 77.88
(B) cause
(C) place
(D) organization
Answer:
The correct answer is (A) event
Explanation:
Event marketing is a strategy that consists of giving memorable experiences to the consumers of a brand, in order to last in their memory. This type of activity aims to identify the brand and connect with it.
Thanks to these events, the company increases its brand recognition, improves the image, establishes strong relationships with customers, employees and suppliers.
Answer:
$104,000
Explanation:
Note: The full question is attached as picture below
Fair value of net assets = Cash and receivables + Inventory + Land + Buildings (net) + Equipment (net) - Liabilities
Fair value of net assets = $70,000 + 210,000 + 240,000 + 270,000 + 90,000 - 420,000
Fair value of net assets = $460,000
Purchase consideration paid = 12,000*$47
Purchase consideration paid = $564,000
Goodwill recognized = Purchase consideration - Fair value of net assets
Goodwill recognized = $564,000 - $460,000
Goodwill recognized = $104,000
Answer:
$388,017.16
Explanation:
The amount that shall be accumulated at the beginning of retirement to provide a $2,500 for the period of 25 years shall be determined through the present value of annuity formula which is mentioned below:
Amount that should be accumulated=R[(1-(1+i)^-n)/i]
In the given question
R=monthly check that will be received=$2,500
n=number of months during which monthly checks will be received=25*12=300
i=interest rate compounded monthly=6/12=0.50%
Amount that should be accumulated=2500[(1-(1+0.50%)^-300)/0.50%]
=$388,017.16