Relationship between the interest rate and the npv

Assignment Help Accounting Basics
Reference no: EM131015512

Please explain and show all work including equations.

Evaluate the following two cash flow streams using the PP, ROI, NPV, and IRR. Assume a MARR of 8%. Plot a graph showing the relationship between the interest rate and the NPV. Provide an interpretation of your calculations and graph.


0

1

2

3

4

CF Project 1

-$98,024

$74,000

$28,000

$12,000

$8,000

CF Project 2

-$76,000

$26,000

$26,000

$26,000

$26,000

Reference no: EM131015512

Questions Cloud

Is he liable as an indorser why or why not : He contended that the check had not been dishonored within the time allowed by law. Is he liable as an indorser? Why or why not? Can you please go into detail as the wording of this question throws me off a little bit.
Find its displacement : A spring with natural length .5 m has length 50.5 cm with a mass of 2 gm suspended from it. The mass is initially displaced 1.5 cm below equilibrium and released with zero velocity. Find its displacement for t > 0.
Calculate the net present value for the project : Calculate the Net Present Value for the project that requires an investment of $91,347, has the estimated returns given in the following table, and must meet a minimum acceptable rate of return of 15%:
Find the frequency period and phase angle of motion : A 10 kg mass stretches a spring 70 cm in equilibrium. Suppose a 2 kg mass is attached to the spring, initially displaced 25 cm below equilibrium, and given an upward velocity of 2 m/s. Find its displacement fort > 0. Find the frequency. period, am..
Relationship between the interest rate and the npv : Evaluate the following two cash flow streams using the PP, ROI, NPV, and IRR. Assume a MARR of 8%. Plot a graph showing the relationship between the interest rate and the NPV. Provide an interpretation of your calculations and graph.
Stock return for the missing year : What was the stock's return for the missing year? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) What is the standard deviation of the stock's returns?
Describes the project background and general requirements : Write a paper of no more than 1,050 words that describes the project's background and general requirements (SCOPE), which must include pre-scheduled milestones, cost constraints, and quality requirements
Find all values of e such that the free vibration of weight : A 16 lb weight stretches a spring 6 inches in equilibrium. It is attached to a damping mechanism with constant c. Find all values of e such that the free vibration of the weight has infinitely many oscillations.
Illustrate cost allocation process using the direct method : Describe and illustrate the cost allocation process using the Direct method.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Compute the number of units transferred to finished goods

The number of equivalent units with respect to both materials used and labor used in the production department for April using the Weighted average method.

  Anthropology and your future

Consider issues that are current in our own society today. Where will the application of an anthropological perspective be most effective? Consider and describe how the study of anthropology and its unique perspectives on human cultural behavior w..

  Partners capital balances after withdrawal

All assets are valued fairly. Pam decides to retire from the partnership. Calculate the remaining partners' capital balances after the Pam withdrawal under the following situations:

  Lincoln electric company harvard case study

A company with a distinctive organization culture is the Lincoln Electric Company. This company manufactures welding equipment. It is located near Cleveland, Ohio USA. It is considered to be one of the best managed manufacturing companies in the ..

  Bailey company sells 25424 units at 1500 per unit variable

bailey company sells 25424 units at 15.00 per unit. variable costs are 8.00 per unit and fixed costs are 8.00. the

  Net present value of the investment

If the machine has no salvage value at the end of seven years, and assuming the company's discount rate is 10%, what is the purchase price of the machine if the net present value of the investment is $170,000?

  Method of amortising discounts and premiums

The firm uses the effective interest method of amortising discounts and premiums. The bonds were sold to yield an effective interest rate of 10%.

  What defenses are available to the newspaper

Explain in detail what theory John can use to recover damages from The Blurb. What defenses are available to the newspaper?

  The following questions dealing with shareholders

The following questions dealing with shareholders' equity are adapted from questions that previously appeared on Certified Management Accountant (CMA) examinations.

  Hibbett company does not segregate sales and sales taxes

hibbett company does not segregate sales and sales taxes on its cash register. its register total for the month is

  Impact of design of an accounting information system

Impact of Design of an Accounting Information System - Despite this fact, many of these firms rely on a single AIS. From the second e-Activity, for the business you researched, examine how its lines of business would affect the design of a new AIS.

  Calculate the present value of the investment

If an investor is offered an opportunity to invest $500,000 in a new restaurant and he calculates the present value of this investment to be $400,000 using his standard discount rate of 15%, the IRR on this potential investment would be:

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