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Problem:

Money Corp. is considering a $260,000 investment in a new marketing campaign which they anticipate will provide annual cash flows of $54,000 for the next 6 years. The firm has a 10% cost of capital.

Required:

Question: What should the analysis indicate to the firm's managers? Please provide NPV, Payback and IRR.

Note: Show supporting computations in good form.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M91171036

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