User Account

All Pages

Estimate of the project rate of return

Assignment Help Business Management
Reference no: EM132790924

We know that IRR is the discounted rate that forces the PV of the expected future cash flow to equal the initial cash flow. So, in essence IRR forces PV to equal zero. This is helpful because the IRR is an estimate of the project's rate of return. What happens if the IRR exceeds the cost of the funds used to finance the project? What happens if the IRR is less than the cost of capital?

Reference no: EM132790924

Questions Cloud

What does the critical design review establish to ensure : What does the Critical Design Review (CDR) establish to ensure that the system under review has a reasonable expectation of satisfying the requirements
What should be the loss recognized from the sale : On March 1, 2029, the machine was sold for P18,000. What should be the loss recognized from the sale of the machine
Explain what is mercantilism in detail : What is mercantilism? How is it similar to modern capitalism? What are joint-stock companies? In what ways are they precursors to modern corporations?
Companies embarking on international expansion : What are some of the common motivators for companies embarking on international expansion? Why is international market due diligence important?
Estimate of the project rate of return : What happens if the IRR exceeds the cost of the funds used to finance the project? What happens if the IRR is less than the cost of capital?
What is proper cash flow amount to use as initial investment : ABC Inc is looking to set up a new manufacturing plant, What is the proper cash flow amount to use as the initial investment when evaluating this project?
How do you know whats going on in the world : Do you watch news shows? Subscribe to news apps? Does your mom just tell you the news highlights of the week? Tell us how you know what''s happening
Determine the coupon payment : Given Number of Periods to Maturity is 8, Face Value is $1,000, YTM is 4.5%, and the Bond Price is $880.00, determine the Coupon Payment.
How western european empires operated : In chapter 7, Burbank and Cooper argue that "Both [the Russian and Chinese] imperial systems developed flexible ideologies that differed fundamentally.

Reviews

Write a Review

Business Management Questions & Answers

  How can you determining possible physical threats

How can you determining possible physical threats may affect the choice of physical security countermeasures while planning new or updated security systems.

  Formulate individual strategies

Individuals and organizations are alike in many ways. Each has competitors, and each should plan for the future. Every individual and organization faces

  Developing an operational plan

Provide three reasons why managers have to prepare budgets as part of developing an operational plan.

  Probability of a registration time

What is the probability of a registration time shorter than 6 minutes?

  Medicare conditions of participation step

By-laws based on the information in the Medicare's Conditions of Participation Step Three: Write a formal proposal to the CEO and Medical Staff director containing the following:

  Forces of influence impact the decisions

How did your "Forces of Influence" impact the decisions. Add any examples as a method for enhancing the detail.

  Strategic view about total quality management

What has led to the more comprehensive strategic view about total quality management?

  What is the cost of goods sold

Food and beverage sales for the month are $90,000. Check average is $45. Food cost is 33%, beverage cost is 12%, labor cost is 18%. What is the cost of goods sold?

  Discuss the given case using corporate social performance

Discuss this case using the following Corporate Social Responsibility approaches: Stakeholder Theory, Corporate Citizenship and Corporate Social Performance.

  Biggest disadvantage of franchising

What are the biggest advantage and the biggest disadvantage of franchising?

  Discuss relevance of henri fayol management principles

Discuss the Relevance of Henri Fayol's management principles to your country's public administration.

  Why are customers referred to as partial employees

Why are customers referred to as 'partial' employees? Which implications does it have for the management?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd