Determine the irr for project

Assignment Help Financial Management
Reference no: EM132057604

A firm evaluates all of its projects by using the NPV decision rule. Year Cash Flow 0 –$27,000 1 21,000 2 13,000 3 9,000 Required: (a) At a required return of 27 percent, what is the NPV for this project? (b) At a required return of 40 percent, what is the NPV for this project?

A project that provides annual cash flows of $2,700 for 7 years costs $10,500 today.

Required:

(a) If the required return is 8 percent, what is the NPV for this project?

$3,557.2$3,912.92$4,268.64$4,695.5$3,201.48

(b) Determine the IRR for this project.

17.3%19.03%20.76%22.83%15.57%

Reference no: EM132057604

Questions Cloud

What is the average annual salary of males : MMG 525:If women earn 78.3% of males' average annual salary in Mass., what is the average annual salary of males? Put the answer in the "Male" box above.
Determining the lack of experience : You are an expert witness for the first time. Because of your lack of experience, you talked with a complete stranger about details
Calculate the promised yield and the expected yield on bond : An investor buys the bond for $890.19. Calculate the promised yield and the expected yield on the bond.
Fact-gathering the same as interviewing users : Is fact-finding or fact-gathering the same as interviewing users? Give scenarios where fact-finding is better than the other methods in system analysis?
Determine the irr for project : A firm evaluates all of its projects by using the NPV decision rule. Determine the IRR for this project.
Overcome the scope creep situation : Discuss different techniques you can adopt to overcome the "scope creep" situation. Your answer should align with the IEEE 830-1998 standards.
What is an open source programming language : What is an "open source" programming language?
Explain how you add value to your company : Research and explain how you add value to your company by using wireless and what policies or procedures you would like to put in place at the company.
Head and returns a pointer to the deleted item : 1. addQueue(&head, item) // adds a queue item, pointed to by "item", to the queue pointed to by head.

Reviews

Write a Review

Financial Management Questions & Answers

  What is the difference in the present value

You are scheduled to receive annual payments of $7100 for each of the next 7 years. The discount rate is 10%. What is the difference in the present value if you receive these payments at the beginning of each year rather than end of each year?

  What is the profitability index if the discount rate

What is the profitability index if the discount rate is 9.6 percent?

  Company additional funds needed for the next year

What are the company's additional funds needed for the next year?

  What will the cash flows for this project be

What will the cash flows for this project be?

  What is initial investment outlay for spectrometer

What is the initial investment outlay for the spectrometer, that is, what is the Year 0 project cash flow?

  Instruction using the future value of annuity formula

Please show me step-by-step instruction using the Future Value of Annuity formula to solve the following: My grandchild will be attending Rutgers University Medical School in New Jersey; four-year college, in year 2036. The college tuition and fees f..

  Sporting goods merchandise on account from various vendors

Andrea Sampri Sporting Goods Store purchases sporting goods merchandise on account from various vendors. The terms of the purchase are 2/10, n/30. The delivery date and invoice date is May 15, 2015. The amount of the total amount of the invoice is $1..

  What is the expected return for stock

Using the table above, what is the expected return for Stock A? What is the standard deviation for Stock A (Note: Use 7 decimal places to calculate the variance.)? what is the expected return on the portfolio if you invest $7,000 in Stock A and $3,00..

  What is the par value and current interest payment of tips

what is the par value and current interest payment of the TIPS

  What is the exact real rate of return

If the nominal interest rate is 7% per year and the inflation rate is 2% per year, what is the exact real rate of return?

  About the eurobond

A Eurobond is a: A) bond payable in the investor's currency but sold outside the borrower's country. B) bond payable in the investor's currency but sold inside the borrower's country. C) bond payable in the borrower's currency and sold inside the bor..

  Calculate best-case and worst-case npv figures

We are evaluating a project that costs $680,000, has a five-year life, and has no salvage value. Calculate best-case and worst-case NPV figures

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