Calculate the projected and actual irr

Assignment Help Econometrics
Reference no: EM13232997

A foundry is fully equipped for $650,000. It is expected to earn $85,000 annually for 15 years without any salvage value. Due to changing market conditions, the foundry is sold for $100,000 after 8 years. Calculate the projected and actual IRR (Internal Rate of Return).

Reference no: EM13232997

Questions Cloud

Explain the value of the equilibrium constant : Estimate the value of the equilibrium constant at 640 K for each of the following reactions. DELTA Hf and S^o for BrCl (g) is 14.6 kj/mol and 240.0 J/mol*k , respectively. 2NO2(g) double arrows N2O4 (g)
Calculate single deposit if made now will fund endowment : A successful engineer wants to fund an endowment for a university which will pay $10,000, $15,000, $20,000, and $25,000 for the 1st, 2nd, 3rd, and 4th quarters respectively, each year, forever. For an interest rate of 8% compounded quarterly,
Give pseudocode to reconstruct an lcs from completed c table : Give pseudocode to reconstruct an LCS from the completed c table and the original sequences X = and Y = in O(m+n) time, without using the b table. Do this by writing a modified version of PRINT-LCS?
Define what is the probability that removed 8 straight nails : A box of nails contains 90 straight nails and 10 nails too bent to be used. You randomly select 10 nails from the box. What is the probability that you removed 8 straight nails and 2 bent nails? To find the probability, first derive a general expr..
Calculate the projected and actual irr : A foundry is fully equipped for $650,000. It is expected to earn $85,000 annually for 15 years without any salvage value. Due to changing market conditions, the foundry is sold for $100,000 after 8 years
How to restore the site to original environmental conditions : A bauxite mine can be purchased for $20,000,000 and is expected to yield $5,300,000 annually for the next 20 years. After that, the mine is closed and $4,000,000 will be required to restore the site to original environmental conditions
Compute the difference in ph : The pH of 0.5 M formic acic, HCOOH, is 2.02. Calculate the difference in pH when 6.42 g of HCOONa is added to 390.9 mL of 0.50 M formic acid. Ignore any changes in volume.
Find what is the irr-internal rate of return : An investor deposits $30,000 annually at the end of each year for the next 15 years. At the end of the 16th year he starts to withdraw a geometric series of 20 annual payments, each 5% larger than the previous one.
Explain how many moles of hco3 : When bicarbonate is reacted with acid it releases CO2. How many moles of HCO3? did you start with if you collect 1.24 x 10 3 moles of CO2(g)?

Reviews

Write a Review

Econometrics Questions & Answers

  What is probability that she favors present value account

in a survey of 15 accountants, 10 favored present-value accounting, 6 favored a shortening of the allowable depr. period and 3 recommended no change. suppose one of the accountants involved in the surevey is selected at random.

  What are the values of coefficient of determination

There is a belief that a person's performance on the GMAT (entrance exam to get into graduate school) can be predicted by their undergraduate GPA. Based on regression analysis what are the following values, (Round to three decimal places; put it ..

  Calculate and interpret the own price and cross price

The daily demand for Invigorated PED shoes is estimated to be where Ax represents the amount of advertising spent on shoes (X), Px is the price of good X, Py is the price of good Y, and M is average income.

  What will your optimal consumption of midgets be

You have 8 midgets (M) and 12 dwarves (D). The price of midgets is $10 each, and the price of dwarves is $11 each. If your utility function for midgets and dwarves is given by U(M,D)=.5M + .6D, what will your optimal consumption of MIDGETS be.

  What the equilibrium could be if the interest rate increased

Consider the inter-temporal model of consumption of a household who has a first period income of 300 and a second year income of 330. The interest rate is 10%. The household saves 100 in period one. a) Write the budget  constraint of period one and..

  What is the consumer-producer and total surplus

A firm is the only seller of the same good in two markets, market 1 and market 2. The inverse demand in market 1 is p1 = 200 ? q1, and the inverse demand in market 2 is p2 = 100 ? 2q2. The marginal cost of production is constant and equal to 40. t..

  Calculate the prices necessary to generate a supply

Supply Function: A review of industry-wide data for the jelly and jam manufacturing industry suggests the following industry supply function: Q = 59,000,000 + 500,000P - 125,000PL - 500,000Pk + 2,000,000W Where Q is cases supplied per year, P is the..

  Calculate the velocity of circulation and nominal gdp

If quantity of money is $3 trillion, real GDP is $10 trillion, the price level is ..09, the real interest rate 2 percent a year, and the nominal interest rate is 7 percent a year, calculate the velocity of circulation, the value M times V, and nom..

  Calculate its excess reserves of banks

Suppose that the reserve requirement is 3% on the first 30 million of checkable deposits and 10% on the checkable deposits in excess of 30 million. (Amounts on the balance sheet are in millions of $) Assets- Reserves 15.9, Loans 150.0, Securities 3..

  Determine the price of sugar rises

Suppose that the market for candy canes operates under conditions of perfect competition, that it is initially in long-run equilibrium, and that the price of each candy cane is $0.10. Now suppose that the price of sugar rises, increasing the margi..

  Determine the cash flow statement including npv and irr

The motel will cost $1,000,000 to build. Simplify depreciation to be calculated as straight line over 30 years. It will be financed with a 30 year loan at 8% interest compounded annually with annual payments. It will be sold at the end of year 15 for..

  What is the proper current price of the investment

Suppose that a risk-free investment will make three future payments of $100 in one year, $100 in two years, and $100in three years. If the Federal Reserve has set the risk-freeinterest rate at 8 percent, what is the proper current price of this in..

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