Annual revenue is unchanged-what is the irr for the project

Assignment Help Financial Management
Reference no: EM131887319

Consider the financial data for the following project. The annual revenue and annual expenses occur at the end of years 1 through 6 and the salvage value is recouped at the end of the 6 years.

Initial investment: $105,000

Annual revenue: $30,000

Annual expenses in year 1: $8,900

Salvage value: $11,000

Project life (years): 6

If the annual expenses increase at an annual rate of 7.6% compared to the previous year's expenses, but the annual revenue is unchanged, what is the IRR for the project? Express your answer as percentage between 0 and 100.

Reference no: EM131887319

Questions Cloud

What is the wind velocity : A plane flies with an air velocity of 1000km/h (N40degreesE). The ground velocity is 1050km/h NE. What is the wind velocity?
Explain the major research paradigms : Select any two of the following areas of I/O emphasis. Identify topics that are of particular interest to you. Conversely, you may want to select an area.
Write an essay about a good man is hard to find by flannery : Write an essay about "A Good Man is Hard to Find" by Flannery O'Connor. Use at least one quote in each body paragraph (introduce and discuss the quote as well).
What is the magnetic field in that region of space : The charge on a proton is 1.602 × 10-19 C. What is the magnetic field in that region of space? Answer in units of T.
Annual revenue is unchanged-what is the irr for the project : compared to the previous year's expenses, but the annual revenue is unchanged, what is the IRR for the project?
Identify the key pieces of raw intelligence : What individuals, groups, or delegations attending the UNGA meeting in New York are being targeted by domestic or international terrorists?
Person base of support and center of gravity : Considering what you know about maximizing stability with respect to a person's base of support and center of gravity
Topic - signal and system matlab : Topic - Signal and system matlab - Also, in the first few milliseconds and in the last few milliseconds, the two signals differ in another way. Explain why
Discuss the dual nature of I-O research and practice : Using the Argosy University online library resources, locate an empirical article that represents a strong example of the dual nature of I/O research.

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd