Question
You are selling streamer kits consisting of a ring light and a phone cradle to aspiring streamers, you sell the kits for $20 each on
You are selling "streamer kits" consisting of a ring light and a phone cradle to aspiring streamers, you sell the kits for $20 each on Amazon.
The kits cost $8 each to produce, and you produce just enough to keep up with sales. You decide to promote your business by giving away 100 kits to prominent Youtubers in the hope they will mention your business.
If those mentions lead to 50 extra sales per year, for the next three years, what is the IRR on the project?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
To calculate the Internal Rate of Return IRR on the project we need to consider the initial investme...
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Accounting for Decision Making and Control
Authors: Jerold Zimmerman
8th edition
78025745, 978-0078025747
