Determine the irr to the nearest second decimal place

Assignment Help Finance Basics
Reference no: EM13746209

1. Given cash flows for an investment of $5,800 at time 0, determine the IRR to the nearest second decimal place.

(Hint: Try 10% and 12% and Interpolate)

Year 0 1 2 3 4
Cash Flow -$5,800 $1,800 $1,800 $1,800 $2,000

2. Two hazardous environment facilities are being evaluated, with the projected life of each facility being 10 years. The cash flows are as follows:

Alternative A Alternative B
First cost $615,000 $300,000
Maintenance and operating cost $10,000 $25,000
Annual benefits $158,000 $92,000
Salvage value $65,000 -$5,000

3. The company uses a MARR of 15%. Using rate of return analysis, which alternative should be selected?

Reference no: EM13746209

Questions Cloud

Describe the best features and supply examples of the type : Identify the best sources to find more of these types of prime companies. Describe the best features and supply examples of the type of company that fits your job search.
How long have they had diabetes : Are they on a special diet? How old are they? How long have they had diabetes? How do they go about monitoring their glucose levels? Do they have to prick their finger for blood? How often do they have to do this
Write essay on should spanish colonial settlers accept laws : Prepare a short essay (minimum 400 words) in which you take a position and respond to the question: Should Spanish colonial settlers accept the New Laws of 1542?
How can quantity demanded be changed : What are some things that would affect changes in supply? Discuss at least two factors and how can quantity demanded be changed?
Determine the irr to the nearest second decimal place : Given cash flows for an investment of $5,800 at time 0, determine the IRR to the nearest second decimal place.
Write about dam : Write about Dam (10 benefits about dam, 10 problems about dam)
What are the nash equilibrium of game : Explain in words why an English auction is equivalent to a second-price, sealed-bid auction in terms of bidding strategies and explain in words why a Dutch auction is equivalent to a first-price, sealed bid auction in terms of bidding strategies.
Create a powerpoint presentation of ethical implications : Create a PowerPoint presentation for your partners about the ethical implications of using personality and interest inventories to screen potential employees. How might this practice be unfair to potential applicants. How might organizational membe..
Discuss how the process of manufacturing changed in the us : discuss how the process of manufacturing changed in the United States after 1820? How did this change affect the nature of work?

Reviews

Write a Review

Finance Basics Questions & Answers

  Determine which items should be included in a statement of

presented below is selected financial information for yvonne corporation for december 31 2012.inventory25000cash paid

  Computations of cash flow

If, at the end of project life, a piece of machine having a book value of $4,000 is expected to bring $3,000 upon resale, and income tax rate is 40 percent,

  The board for colton industries is considering a proposal

the board for colton industries is considering a proposal by the ceo to sell the firms boat manufacturing division. an

  Compute earnings per share for both firms

Compute earnings per share for both firms. Assume a 25 percent tax rate. (Round your answers to 2 decimal places. Omit the "tiny_mce_markerquot; sign in your response.)

  You want to have 1 million in real dollars in an account

you want to have 1 million in real dollars in an account when you retire in 30 years. the nominal return on your

  Business culture is the context in which the measures exist

business culture is the context in which the measures exist. they are bound to each other in terms of context and

  Calculating breakeven point and operating leverage

Schweser Satellites Corporation manufactures satellite earth stations that sell for $100,000 each. The company's fixed costs, F, are $2 million; 50 earth stations are produced and sold every year;

  Here are several questions about economic value added or

here are several questions about economic value added or eva.a. is eva expressed as a percentage or a dollar amount?b.

  What was the inflation rate during this period

You bought a bond one year ago for $980. At the time the bond matured in six years. The bond has an 8% annual coupon. This investment had a nominal return of 9% and a real return of 6.75%. What was the inflation rate during this period?

  Use a recent within the last 30 days from the date of your

assignment on international financeuse a recent within the last 30 days from the date of your assignment issue of the

  Calculate the banks repricing gap and gap ratio

Assuming the bank does not change the composition of its balance sheet, calculate the resulting change in the bank’s interest income, interest expense, and net interest income.

  What is the after-tax cost of debt

Jiminy's Cricket Farm issued a 30-year, 6 percent, semiannual bond 8 years ago. The bond currently sells for 97 percent of its face value. What is the after-tax cost of debt if the company's tax rate is 32 percent? Answer

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