Considering investing in project with the cash flows

Assignment Help Financial Management

Reference no: EM131984564

Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 8 percent, and that the maximum allowable payback and discounted payback statistics for the project are 3.5 and 4.5 years, respectively. Time: 0 1 2 3 4 5 6 Cash flow –$7,700 $1,110 $2,310 $1,510 $1,510 $1,310 $1,110 Use the IRR decision rule to evaluate this project. (Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places.)

Reference no: EM131984564

Questions Cloud

Calculate acquisition analysis for tuna ltd : ACC705 - Calculate acquisition analysis for Tuna Ltd and Prepare consolidation journal entries for Tuna Ltd. Prepare a consolidated set of financial

Determine the ending balance due use the us rule : After 90 days, Shawn paid $3,100 on the note. On day 129, Shawn paid an additional $5,100. Use ordinary interest.

At what rate is the dividend growing : The last dividend paid was $2.21 per share and the market rate of return is 15.8 percent. At what rate is the dividend growing?

How would you use social media and why : If you were opening up your own business, how would you use social media and why? Which platform would you choose (choose one), why

Considering investing in project with the cash flows : Suppose your firm is considering investing in a project with the cash flows shown below, Use the IRR decision rule to evaluate this project.

Define idea of success : Define your idea of success -what it is, how it can be achieved, of what value it is to the person achieving it. Write it as an editorial for your school.

What is his demand for bonds equation : Write a formula that his DJT’s demand for money as a function of the two interest rates. What is his demand for bonds equation?

What are some things that you learned about poetry : What are some things that you learned about poetry, fiction, and drama that you did not know before?

Goals and meeting the requirement : Success also has different definition. A dictionary ma define it as reaching your goals and meeting the requirement of what should be done.

User Account

All Pages