Advertising campaign-what is the irr of this investment

Assignment Help Business Economics

Reference no: EM131005518

An advertising campaign will cost $ 200 000 for planning and $ 40 000 in each of the next six years. It is expected to increase revenues permanently by $ 40 000 per year. Additional revenues will be gained in the pattern of an arithmetic gradient with $ 20 000 in the first year, declining by $ 5000 per year to zero in the fifth year. What is the IRR of this investment? If the company’s MARR is 12 percent, is this a good investment?

Reference no: EM131005518

Questions Cloud

What is the density of carbon dioxide gas under the same : A 0.500-kg mass on a spring has velocity as a function of time given by vx (t) = (3.60cm/s) sin [(4.71s-1)t -?/2]. What is period? The amplitude? The maximum acceleration of the mass? What is the force constant of the spring? a) What is the density o..

Using straight-line depreciation with scrap value : Using a streadsheet program, chart the book value of a $14 000 asset over a seven-year life using declining-balance depreciation (d=0.2). On the same chart, show the book value of the $14 000 asset using straight-line depreciation with scrap value of..

Calculate the wetted perimeter of the drain : Analyze the following article and write a 2 page critique on it - Find the value of sinh 4.45 to four decimal places using the exponential form. Check your result using the series for sinhx x to the sixth term.

Bring about growing equality with income : Why is their a growing disparity between the rich and poor in the US? What are some of the reasons for this and what should the government do to bring about growing equality with income?

Advertising campaign-what is the irr of this investment : An advertising campaign will cost $ 200 000 for planning and $ 40 000 in each of the next six years. It is expected to increase revenues permanently by $ 40 000 per year. Additional revenues will be gained in the pattern of an arithmetic gradient wit..

What effects did the slave trade have on africans : What effects did the slave trade have on Africans. (Use information from both Equiano and the textbook.) (Class is The Non-Western World) William Duiker and Jackson J. Spielvogel. World History: Volume Two: Since 1500. [5th -7th Edition] Californi..

Business produces a secret recipe salsa : Your family business produces a secret recipe salsa and distributes it through both smaller specialty stores and chain supermarkets. The chains have been demanding sizable discounts but you do not want to drop your prices to the specialty stores. How..

How fast must the spy-car drive along-side the train : How fast must the spy-car drive along-side the train in order to give the daring spy the best chance of landing in the car? The Aston Martin should be travelling at miles per hour.

Morewell-constructed paragraphs : Answer ONE of the following intwo or morewell-constructed paragraphs.

User Account

All Pages