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An advertising campaign will cost $192,000 for planning and $40,000 in each of the next six years. It is expected to increase revenues permanently by
An advertising campaign will cost $192,000 for planning and $40,000 in each of the next six years. It is expected to increase revenues permanently by $40,000 per year. Additional revenues will be gained in the pattern of an arithmetic gradient with $16,000 in the first year, declining by $4,000 per year to zero in the fifth year. What is the. IRR of this investment? If the company's MARR is 11 percent, is this a good investment?
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