Calculate the internal rate of return of the project

Assignment Help Business Economics
Reference no: EM131081659

Investment project R is estimated to have a net present value of $450,000 at a discounting factor of 11% and a net present value of $50,000 at a discounting factor of 13%.

Q1 Calculate the internal rate of return of the project.

The investor estimates the following figures for investment project Q:

Initial cost of project $9,500,000

Expected life of project 6 years

Total return before allowing for repairs and maintenance $18,600,000

Average cost per annum of repairs and maintenance $630,000

Q2 Calculate the average rate of return of project Q.

Reference no: EM131081659

Questions Cloud

Determine the magnitude of the electric field : Determine the magnitude of the electric field 3.0 cm from the point charge.
Calculate the average credit taken by the retailer : (a) Calculate the average credit taken by the retailer, in days. (b) Give a brief explanation of the average credit taken by the retailer.
What does compensation mean to you as an employee : Why do employers provide employee benefits, rather than providing all compensation in the form of pay and letting employees purchase the services they want? Of the benefits discussed in chapter 7, list the ones you consider essential- that is, the..
What is the ratio of the dielectric thickness of capacitor : what is the ratio of the dielectric thickness of capacitor
Calculate the internal rate of return of the project : Investment project R is estimated to have a net present value of $450,000 at a discounting factor of 11% and a net present value of $50,000 at a discounting factor of 13%.
Determine the amount of charge,q, on each ball : determine the amount of charge,q, on each ball
Net purchases of company t for that year : The rate of stockturn for Company T in the year 2006 was 12.5. At the start of that year the company held stock to the value of $327,950, and at the end of that year the value of stock held was $300,450.
Record the payments received for each patient contained : Beneath the yellow sample row in the spreadsheet, record the payments received for each patient contained in the Remittance Advice Information document. Use the following guidelines in capturing the data.
How much more energy does the object emit as blackbody : How much more energy does the object emit as blackbody raidation at the higher temperature compared to the lower temperature?

Reviews

Write a Review

Business Economics Questions & Answers

  Compute the t-statistics for each variable

Compute the t-statistics for each variable and explain what is inferences can be drawn from them.

  Traditional mortgage amortization schedule negative-amortion

Unlike the traditional mortgage amortization schedule, "negative-amortization" mortgages permit the:

  Money supplies as a result of arbitrage

Suppose that the United States and the United Kingdom both use the gold standard. Their prices of gold are $35 = 1 ounce and £7 = 1 ounce, which yields an implied exchange rate of $5 = £1. Now suppose that the exchange rate temporarily rises to $5.50..

  Cash flow profile for alternative using cash flow approach

Clear Water Company has a down-hole well auger that was purchased 3 years ago for $30,000. O&M costs are $13,000 per year. Alternative A is to the keep the existing auger. It has a current market value of $12,000 and it will have a $0 salvage value a..

  Maintain its competitive edge against rival firms

You work as part of an analysis team for a consultancy that follows the semiconductor industry. Your boss saw the story from PC World and asked you to provide some analysis for an upcoming industry conference. There’s some concern as to whether Intel..

  What indifference curves and budget constraints

What indifference curves and budget constraints to explain how an individual labor supply is affected by qualifying for the TANF program?

  Calculate the economic manufacturing quantity

The demand for 1,000 units of a part to be used at a uniform rate throughout the year may be met by manufacturing. The part can be produced at the rate of 3 per hour in a department that works 1,880 hours per year.

  Describing the dynamics of those employed

Consider now an economy where you need to search for a job. Let b be the fraction of people that do not have a job and are searching for one. Here active population and working age population do not coincide. Let s be the job separation. Write the eq..

  Q1 the government is considering a policy to reduce air

q1. the government is considering a policy to reduce air pollution by restricting the use of dirty fuels by factories.

  Elements of fiscal policy that move the budget

Elements of fiscal policy that move the budget toward surplus as the economy expands and toward deficit as it contracts are called ________.

  What monthly withdrawal can you make if you want the account

You decide to open a retirement account at your local bank that pays 7%/year/month (7% per year compounded monthly). For the next 20 years, you will deposit $500 per month into the account, with all deposits and withdrawals occurring at month’s end.

  When an economy is under autarky the price of eggplant

When an economy is under autarky the price of eggplant is $5. The world price of eggplant is $3.50. If opened to the world market, would consumers or producers benefit? Would consumers or producers lose? Explain your reasoning (using a graph would be..

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