Determine the irr for this project

Assignment Help Financial Management
Reference no: EM132022903

A project that provides annual cash flows of $2,800 for 8 years costs $12,100 today.

Required:

(a) If the required return is 9 percent, what is the NPV for this project?

$3,397.49 $3,737.24 $4,076.99 $4,484.69 $3,057.74

(b) Determine the IRR for this project.

16.16% 17.77% 19.39% 21.33% 14.54%

Reference no: EM132022903

Questions Cloud

Company capital structure weights on book value basis : What are the company's capital structure weights on a book value basis? Which are more relevant, the book or market value weights?
What are african american parents experiences : What are African American parents experiences with behavioral therapy for children who have oppositional defiance.
Immediately start saving for retirement : Sherry began working full time and would like to immediately start saving for her retirement.
Analyze the role of gender in the workplace : Analyze the role of gender in the workplace. What are some differences between men and women in the workplace? How do these roles differ from the past?
Determine the irr for this project : If the required return is 9 percent, what is the NPV for this project? Determine the IRR for this project.
Discuss how this was a boundary crossing issue : Discuss how this was a boundary crossing issue, how would you use this moment to teach the professional about boundaries?
Discuss and give your position on the given statement : Discuss and give your position on the following statement: "Human activity, especially the burning of fossil fuels, is a major contributor to climate change".
What will be the post-merger share price : How many new shares will be issued, and what will be the post-merger share price?
Explain potential barriers this family might encounter : Explain how a social worker might address this barrier on an individual, family, organizational, group, or community level.

Reviews

Write a Review

Financial Management Questions & Answers

  What is your best estimate of the company cost of equity

If the stock sells for $58 per share, what is your best estimate of the company's cost of equity?

  Determine for each plan the earnings per share of common

Determine for each plan the earnings per share of common stock, assuming that the income before bond interest and income tax is $12,600,000.

  Indicative of optimistic market

Which of the following would be considered bullish (indicative of an optimistic market)?

  Do you think the Twitter IPO was successful

Do you think the Twitter IPO was successful? For the company? For investors? Alibaba's recent IPO in the US was somewhat unusual. What do you think about this IPO? Would you buy shares? Why or why not?

  What is required rate of return of the common stock

If the growth rate is 6% per annum and the earnings are $ 4 per share. What is the required rate of return of the common stock?

  Determine what is this constant growth rate

Suppose a stock just paid a dividend of $1.50 per share. The dividend per share is expected to grow at a rate of 18 percent next year and 20% the following year

  Prepare a monthly cash budget for the next three months

It pays 40 percent of purchases in cash and gets a 4 percent discount. Another 40 percent of purchases are paid the next month, and the final 20 percent of purchases are paid in the second month after the purchase. Prepare a monthly cash budget for t..

  Consider coupon bond with coupon rate

Consider a coupon bond with coupon rate 5 percent and a face value of $1000 and a maturity date of January 1, 2020.

  Calculate the expected npv for both projects

Calculate the expected NPV for both projects. - Calculate the variance and standard deviation of the NPVs for both projects. Which project appears to be riskier?

  Position that complies with federal law

Prepare an advertisement for that position that complies with federal law. This advertisement must be detailed. The minimum length of your job description must be 300 words (approximately three-fourths of a page).

  Transactions costs-are these prices reasonable

Suppose you look in the newspaper and see ABC trading at $60 per share. Calls on ABC with one month to expiration and an exercise price of $55 are trading at $6.50 each. Puts on ABC with one month to expiration and an exercise price of $65 are tradin..

  Calculate the percentage change in operating income

Calculate the percentage change in operating income and compare it with the percentage change in sales.

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