Find what is internal rate of return that investment offers

Assignment Help Financial Accounting
Reference no: EM132953393

An investment that Kevin is considering offers the following cash flows.

Year 1 Initial investment of $220,000

Year 2 Inflow of $55,300

Year 3 Inflow of $27,500

Year 4 Additional investment of $55,000

Year 5 Inflow of $68,900

Year 6 Inflow of $72,600

Year 7 Additional investment $11,900

Year 8 Inflow of $51,050

Year 9 Inflow of $21,750

Year 10 Sale proceeds of $103,000

Problem 1: What is the internal rate of return (IRR) that this investment offers if all cash flows occur at the end of each period?

Reference no: EM132953393

Questions Cloud

Prepare a element preparation sheet for negotiations : Prepare a element Preparation Sheet for this negotiations - Describe (in not more than 2 pages) your strategy in using the 7 elements;
Which the inventory write-down that results from application : Which the inventory write-down that results from the application of the lower of cost and net realizable value rule is often hidden in the
Prepare the journal entries relating to stock option plan : Prepare the Journal Entries relating to the stock option plan for 2020 2021 and 2022. Assume that all of the executives started with the company
Explanation of investment philosophy : An investment plan is an explanation of your investment philosophy and your logic on investing to reach specific financial goals.
Find what is internal rate of return that investment offers : What is the internal rate of return (IRR) that this investment offers if all cash flows occur at the end of each period? Year 1 Initial investment of $220,000.
Content of the financial aspect : Additional Information: It is a service type business a feasibility study knowing that if it is feasible in terms of the financial aspects of the proposed busin
Which accounts is not reported on the statement of changes : Which accounts is not reported on the Statement of Changes in Shareholders' Equity? Accumulated Other Comprehensive Income
Compute the covered interest arbitrage : Using the above quotes and assuming that you can borrow up to $1,000,000 or £666,667 show how you can do a covered interest arbitrage (CIA)
What the amount of dividends received by common shareholders : What the amount of dividends received by the common shareholders in year 3 was? Seaside Developments Inc. has $200,000 of no par value 4% cumulative

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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