Relationship between the interest rate and the npv

Assignment Help Finance Basics
Reference no: EM131015639

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: EM131015639

Questions Cloud

Iodine 131 has a half life of 8 days : Iodine 131 has a half life of 8 days and decays by a first order process (as is always the case for radioactive decay). How much of a 48 gram sample of iodine 131 will remain after 8 days? answer in grams.
Net present value and annualized net present value : Calculate the Net Present Value and the Annualized Net Present Value for the two projects with the following cash flow streams given an MARR of 15%. Which project is preferable based on the NPV? Which is preferable based on the ANPV? Which of the ..
Compute 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%:
What two angles of elevation will enable a projectile : What two angles of elevation will enable a projectile to reach a target 14 km downrange on the same level as the gun if the projectiles initial speed is 397 m/sec?
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.
Find the speed that minimizes total cost for a trip : A truck burns fuel at the rate (gallons per hr) of G(x) = 1/33(64/x+x/49) while traveling at x mph. If fuel costs $1.18 per gallon, find the speed that minimizes total cost for a 200-mile trip.
Identify the business level strategy of tesco : Identify the business level strategy of TESCO (this could be also been found/linked from question 2. That is either cost leadership or differentiation or hybrid (both)
How can someone tell how stable or unstable an element : How can someone tell how stable or unstable an element is if all we know is where that element is placed on the periodic table?
What can be concluded concerning the refractive indices : The figure shows the path of a portion of a ray of light as it passes through three different materials. What can be concluded concerning the refractive indices of these three materials?

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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