Compute the internal rate of return for each of the projects

Assignment Help Financial Management
Reference no: EM132386863

Question :

Following is information on two alternative investments being considered by Tiger Co. The company requires a 4% return from its investments.
Initial investment

Expected net cash flows in:

Year 1 Year 2 Year 3 Project X1 Project X2
$(130,000) $(220,000)
50,000 97,500
60,500 87,500
85,500 77,500

Compute the internal rate of return for each of the projects using Excel functions. Based on internal rate of return, indicate whether each project is acceptable. (Round your answers to 2 decimal places.)

Reference no: EM132386863

Questions Cloud

The history of data from ancient times to the present day : Draw a timeline showing the landmark events in the history of data from ancient times to the present day.
How should able report this item on his 2019 tax return : On December 31, 2018, the stock was worth $85,000. On August 15, 2019, Able was notified that the stock was worthless.
Prepare an income statement and a statement of owners equity : Guy McKinley started the McKinley Charter Service at the beginning of August 2019. On August 31.2019. the accounting records of the business.
Consider the consequences for non-compliance : Explain PCI compliance to the database administrator at a large retailer. Consider the consequences for non-compliance.
Compute the internal rate of return for each of the projects : Compute the internal rate of return for each of the projects using Excel functions.Based on internal rate of return, indicate whether each project is acceptable
Risk considerations during development and implementation : Risk considerations during the development and implementation of information systems. The importance of Information systems risk management
What types of social media benefit health care providers : Two registered professional nurses are attending a meeting where the focus is examining teaching methods that enable them to share information with newly.
Important part of the customer service responsibilities : An important part of the customer service responsibilities of a cable company relates to the speed with which trouble in service can be repaired.
Traditional algorithm relates to picture : Fill out least 2 examples to explain how the "11 - 10 = 1" that appears in the traditional algorithm relates to your picture from part a.

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