Technology Corp. is considering a $200,000 investment in a new marketing campaig

Question

Technology Corp. is considering a $200,000 investment in a new marketing campaign which they anticipate will provide annual cash flows of $52,000 for the next 5 years. The firm has a 10% cost of capital. What should the analysis indicate to the firm's managers?

Technology Corp. is considering a $200,000 investment in a new marketing campaign which they anticipate will provide annual cash flows of $52,000 for the next 5 years. The firm has a 10% cost of capital. What should the analysis indicate to the firm's managers?

Explanation / Answer

IRR between 9% and 10% - reject the project

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