Fuzzy button clothing company is analyzing a project that requires an investment of $3,225,000. the project’s expected cash flows are:

year

cash flow

year 1

$300,000

year 2

-200,000

year 3

$450,000

year 4

$500,000

fuzzy button clothing company’s wacc is 8%, and the project has the same risk as the firm’s average project. calculate this project’s modified internal rate of return (mirr).

a. 13.78%

b. -20.40

c.16.08%

d. 18.37%

2. if fuzzy button clothing company’s managers select projects based on the mirr criterion, they this independent project.

a. accept

b. reject

3. which of the following statements about the relationship between irr and the mirr is correct?

a. a typical firm’s irr will be greater than it’s mirr

b. a typical firm’s irr will be less than it’s mirr

c. a typical firm’s irr will be equal to it’s mirr

Which type of data is generally stored in different file formats, such as text files, spreadsheets, and so on?

You are the manager in charge of global operations at bankglobal – a large commercial bank that operates in a number of countries around the world. you must decide whether or not to launch a new advertising campaign in the u.s. market. your accounting department has provided the accompanying statement, which summarizes the financial impact of the advertising campaign on u.s. operations. in addition, you recently received a call from a colleague in charge of foreign operations, and she indicated that her unit would lose $8 million if the u.s. advertising campaign were launched. your goal is to maximize bankglobal’s value. should you launch the new campaign? explain. pre-advertising campaign post-advertising campaign total revenues $18,610,900 $31,980,200 variable cost tv airtime 5,750,350 8,610,400 ad development labor 1,960,580 3,102,450 total variable costs 7,710,930 11,712,850 direct fixed cost depreciation – computer equipment 1,500,000 1,500,000 total direct fixed cost 1,500,000 1,500,000 indirect fixed cost managerial salaries 8,458,100 8,458,100 office supplies 2,003,500 2,003,500 total indirect fixed cost $10,461,600 $10,461,600

Roberto and reagan are both 25 percent owner/managers for bright light inc. roberto runs the retail store in sacramento, ca, and reagan runs the retail store in san francisco, ca. bright light inc. generated a $125,000 profit companywide made up of a $75,000 profit from the sacramento store, a ($25,000) loss from the san francisco store, and a combined $75,000 profit from the remaining stores. if bright light inc. is an s corporation, how much income will be allocated to roberto?