Technology corp. is considering a $238,160 investment in a new marketing campaign that it anticipates will provide annual cash flows of $52,000 for the next five years. the firm has a 6% cost of capital. what should the analysis indicate to the firm's managers?

IRR is 3%. Reject the project.

Explanation:

Given: Investment= $238160.

           Cash flow= $52000

           Time period= 5 years

           Cost of capital= 6%.

Now, finding IRR for the investment to be made on a new marketing campaign.

Formula;

Assuming at IRR approximately 3% we will have zero NPV

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∴ At IRR 3% company is almost close to equal of investment amount $238160, however the cost of capital to the firm is 6% in next five year, which will cause loss to the firm. Hence, project is rejected.

wheres the chart? so i can answer.

i think the answer is a. science center.