Irr calculation

Assignment Help Business Economics
Reference no: EM131197609

(IRR calculation) Determine the IRR on the following projects: a. An initial outlay of $10,000 resulting in a free cash flow of $1,993 at the end of each year for the next 10 years b. An initial outlay of $10,000 resulting in a free cash flow of $2,054 at the end of each year for the next 20 years c. An initial outlay of $10,000 resulting in a free cash flow of $1,193 at the end of each year for the next 12 years d. An initial outlay of $10,000 resulting in a free cash flow of $2,843 at the end of each year for the next 5 years

Reference no: EM131197609

Questions Cloud

Capital budgeting decision methods : In a book named "Cases in Financial Management." Chicao Valve Company (Revised) case 11 Topic - Capital Budgeting Decision Methods, question What is the project's NPV? Explain the economic rationale behind the NPV. Could the NPV of this particular pr..
Describe a potential capital expenditure project : Describe a potential capital expenditure project from the industry in which you now work or an industry in which you are interested. What is the project? Describe and provide an approximate value of the initial cash flow. Describe and provide an appr..
Compute the fee that the manager will earn in dollars : A hedge fund currently has assets of $500 million. The annual fee structure of this fund consists of a fixed fee of 1% of portfolio assets plus a 20% incentive fee. Compute the fee that the manager will earn, in dollars, if the return on the fund in ..
Determine the expected net present value of the project : An investor estimates that investing €5 million in a particular venture capital project can return $40 million at the end of five years if it succeeds; however, she realizes that the project may fail at any time between now and the end of the fifth y..
Irr calculation : Determine the IRR on the following projects: An initial outlay of $10,000 resulting in a free cash flow of $1,993 at the end of each year for the next 10 years. An initial outlay of $10,000 resulting in a free cash flow of $2,054 at the end of each y..
Portfolio weight becomes negative after the short selling : Suppose you have $2,000 in your E*Trade account. You borrow $1,000 and invest all $3,000 in the Intel stock. Determine your portfolio weight Wintel and Wcash. Suppose you have $2,000 in your E*Trade account. You sell short some Intel shares and recei..
What is its present value and its future value : PRESENT AND FUTURE VALUES OF A CASH FLOW STREAM An investment will pay $150 at the end of each of the next 3 years, $250 at the end of Year 4, $300 at the end of Year 5, and $500 at the end of Year 6. If other investments of equal risk earn 11% annua..
Inventory on its balance sheet : Tater and pepper Corp reported sales for 2015 of 24 million. Tater and pepper listed $5.7 million of inventory on its balance sheet. How many days did tater and pepper inventory stay on the premises? How many time per year did tater and pepper invent..
Illegal conduct trading refers usually selling-buying stocks : As you mentioned "Illegal conduct trading refers usually selling and buying stocks, in breach of relationship trust and confidence or fiduciary duty, non public information about the security include tipping." Any real examples individuals abuse the ..

Reviews

Write a Review

Business Economics Questions & Answers

  Annual maintenance of dollar-maintenance cost

Machine X has an initial cost of dollar 10,000, annual maintenance of dollar 500 per year, and no salvage value at the end of its 4-year useful life. Machine Y costs dollar 20,000. The last year there is no maintenance cost. The second year, maintena..

  Growing populations and booming economics add to challenge

In what specific way do growing populations and booming economics add to the challenge of reducing GHG emissions? To what extent might these characteristics explain the failure of some countries to meet their Kyoto targets?

  Important role in the state and federal levels

You now should realize how important it is for economists to try and predict future conditions of the U.S. economy. Economists are also interested in the performance of the economy at a more local level. Discuss how local and national forecasts play ..

  Liquidity-preference and the classical theories

What is the variable that balances the money demand and supply in the liquidity-preference and the classical theories?

  Indifferent between the two payment schemes

Describe how a manager who derives satisfaction from both income and shirking allocates a 10-hour day between these activities when paid an annual, fixed salary of $115,000. which of the compensation schemes does the manager prefer? The scheme with f..

  It is too costly for you to continue running your shop

Suppose you own and operate a coffee shop in your hometown. Each year, you receive revenue of $200,000 from coffee sales, and it costs you $100,000 to obtain your raw materials. In addition, you pay $20,000 for electricity, taxes, and other expenses ..

  What is the difference between shutting down and going out

Say you are the manager of a perfectly competitive firm selling a product. Your business is making a loss because total revenue is less than total costs.

  The exante real interest rate equals

In 2015 the nominal interest rate is 6% and the general price level is $100. People expect the price level in 2016 to be $104 but it turns out to be $108. The ex-ante real interest rate equals:

  Why is the multiplier for contractionary fiscal policy

Why is the multiplier for contractionary fiscal policy smaller in an open? economy?

  May increase or decrease planned investment

Medical Supplies B Us (MSBU), Inc. is trying to weigh the pros and cons with respect to planned investment. The following scenarios may increase or decrease planned investment. Help MSBU, Inc. to examine each scenario to see if it immediately impacts..

  Qsuppose the inverse demand function for an industry is p

q. suppose the inverse demand function for an industry is p 9 - q20. the cost function for the industry is c 10 10q

  What is the optimal number of workers this firm will hire

what is the optimal number of workers this firm will hire? what are profits at this number of workers? is the underlying total cost curve for this firm quadratic or cubic? explain?

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