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Salsk061 [2.6K]
2 years ago
9

Southern california publishing company is trying to decide whether or not to revise its popular textbook, financial psychoanalys

is made simple. the company has estimated that the revision will cost $90,000. cash flows from increased sales will be $21,600 the first year. these cash flows will increase by 4 percent per year. the book will go out of print five years from now. assume that the initial cost is paid now and revenues are received at the end of each year.

Business
1 answer:
steposvetlana [31]2 years ago
8 0

If the company requires a return of 10 percent for such an investment, calculate the present value of the project.

The present value of the project is $72349.51.

Since we consider only incremental cash flows for a project, we consider $21,600 for year one and calculate a 4% increase for each of the additional years.

We then calculate the Present Value Interest Factor (PVIF) at 10% for four years using the formula :

PVIF = 1 / [(1+r)^n]

Next, we find the product of the respective cash flows and PVIF for each year.

Finally, we find the total of the discounted cash flows for the four years to find the Present Value of the project.

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Complete Question:

Ben & Jerry’s Ice Cream buys keywords for a search marketing campaign such as “Ben & Jerry’s Chunky Monkey” and “Ben & Jerry’s Cherry Garcia.” What type of keywords is the firm buying?

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C. Native keywords

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Answer:

E. Branded keywords.

Explanation:

In this scenario, Ben & Jerry's Ice Cream buys keywords for a search marketing campaign such as "Ben & Jerry's Chunky Monkey" and "Ben & Jerry's Cherry Garcia." The type of keywords that the firm is buying is generally referred to as branded keywords.

A branded keyword can be defined as any query of a database through a search engine such as Google which includes the name of the business firm or company.

This ultimately implies that, a branded keyword is any query or search phrases that combines the name of a firm or brand and other branded terms associated with the firm such as product name, type, motto etc. Branded keywords is a strategic marketing process or approach which helps to make business firms or brands available to online customers and the target market or audience.

8 0
2 years ago
A company offered one half of its employees a bonus if the production of light bulbs increased by 30%. The other half of the emp
ZanzabumX [31]
Based on the statement above their need to separate the employee first because there is an employee get bonus and dont. so the correct order of steps to determine the significant result are: c. B,E,D,C,A

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2 years ago
An investor is analyzing a three-unit property by looking at its ability to produce future income. What would most likely be use
Monica [59]

Complete/Correct Question:

An investor is analyzing a three-unit property by looking at its ability to produce future income. Which of the following would most likely be used to determine this value?

a. Effective gross income

b. Gross income multiplier

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d. Potential gross income

Answer:

c, gross rent multiplier

Explanation:

Gross rent multiplier can be defined as the ratio of the price of a real estate investment to the annual income before the calculation of expenses.

It can simply be said to be the number of years it would take a property for pay for itself through rent collection.

Gross rent multiplier is very useful when deciding or trying to select properties to invest in to ensure that factors such as depreciation, periodical cost, etc affects the property/investment drastically.

in the case of the investor in the question above, gross rent multiplier will be used to determine what the future holds for the property.

Cheers

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