Firm evaluates all of its projects by applying the irr rule

Assignment Help Financial Management
Reference no: EM13941294

A firm evaluates all of its projects by applying the IRR rule. A project under consideration has the following cash flows:

Year Cash Flow year 0. –$ 27,100 year 1. $11,100 year 2. $ 14,100 year 3. $ 10,100

If the required return is 15 percent, what is the IRR for this project? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

IRR % =

Reference no: EM13941294

Questions Cloud

Difference between twitter and instant messaging : Question 1: What is the difference between Twitter and Instant Messaging? Question 2: List and briefly discuss three (3) benefits of a business-related social media strategy.
Managements expectations from a training program : Please discuss the case study with specific attention to the measures used to evaluate simon's training. managements expectations from a training program and how to measure simon's effectiveness as a trainer
The project below can be completed in x weeks or less : There is an 82% chance the project below can be completed in X weeks or less. What is X ?
Theories of convergence-divergence and crossvergence : Explain the theories of convergence, divergence and crossvergence. Are these three theories mutually exclusive? Or can we have convergence, divergence and crossvergence all happening in different parts of the environment at the same time?
Firm evaluates all of its projects by applying the irr rule : A firm evaluates all of its projects by applying the IRR rule. A project under consideration has the following cash flows: If the required return is 15 percent, what is the IRR for this project?
Describe the sample size appropriate for the population : Explain which method or instrument you would use to gather data. Describe the sample size appropriate for the population and how you would select participants. Provide a rationale for your choices, and explain how you can ensure high standard of reli..
What is the approximate annual rate of increase for income : Using the rule of 72 answers the following questions. a. In how many years will it take income to double if it is rising each year by 1 percent? 2 percent? 4 percent? b. A country’s income begins at $10,000 and rises to $20,000 in 18 years. What is t..
What must the expected return on this stock be : A stock has a beta of 1.10, the expected return on the market is 12 percent, and the risk-free rate is 3.6 percent. What must the expected return on this stock be?
What is one factor that contributed to egypt expansion : What are two factors (environmental or geographic) that contributed the greatest to the development and expansion of the US? What is one factor that contributed to Egypt's expansion and development?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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