The internal rate of return

Assignment Help Financial Management
Reference no: EM131079519

The internal rate of return

a. May produce multiple rates of return when cash flows are conventional

b. Is best used when comparing mutually exclusive projects

c. Is rarely used in the business world today

d. Is principally used to evaluate small dollar projects

e. Is easy to understand

Reference no: EM131079519

Questions Cloud

Elasticity of demand of the accord : Suppose the annual demand function for the Honda Accord isQd= 430 - 10PA+ 10PC- 40PG, wherePAandPCare the prices of the Accord and the Toyota Camry respectively (in thousands), and P Gis the price of gasoline (per litre).
What will be the equity value of the firm : Company A’s current free cash flow is $2 dollars and forecasts its FCFF to grow at 0% for 2 years, then 10% for 2 years, then at 5% forever. The firm is consisted of 100% equity and has no debt. If the company’s beta is 1.5, the risk free rate is 2% ..
Elements of capitalist in the us economy : The United States is best described as having a "mixed economy". What are some elements of capitalist in the US economy? command elements in our economy? and some elements of tradition?
What is the current market price of these bonds : Jackson Corporation's bonds have 5 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 11%. The bonds have a yield to maturity of 8%. What is the current market price of these bon..
The internal rate of return : The internal rate of return
Debt versus equity financing : You are considering a stock investment in one of two firms (AllDebt, Inc., and AllEquity, Inc.), both of which operate in the same industry and have identical operating income of $7.00 million. Calculate the income available to pay the asset funders ..
Production function in range : In a small European country, it is estimated that a $10,000 increase in capital per hour worked will increase real GDP per hour worked by $300. Based on this information, what is the slope of the per-worker production function in this range?
Discussing about data preprocessing steps : NIT6160 Assignment Project: Data Mining using R. Your report should contain the following: Theoretical Discussion: Limited to two pages discussing about data preprocessing steps, the motivation for selecting a particular method, and how the paramet..
Changing the level of capital : In a small European country, it is estimated that changing the level of capital from $8 million to $10 million will increase real GDP from $2 million to $3 million.

Reviews

Write a Review

Financial Management Questions & Answers

  Maintians a debt-rquity ratio

ABC, Inc. maintians a debt-rquity ratio of 0.60 and follows a residual dividend policy. The company has after-tax earnings of $3100 for the year and needs $3000 for new investments. What is total amount ABC will pay out in dividends for this year?

  Planning your retirement

You are planning your retirement in 10 years. You currently have $167,000 in a bond account and $607,000 in a stock account. You plan to add $7,300 per year at the end of each of the next 10 years to your bond account. Additionally, when you retire y..

  Offered the opportunity to invest in project

You have been offered the opportunity to invest in a project that will pay $1,703 per year at the end of years one through three and $11,992 per year at the end of years four and five. If the appropriate discount rate is 9.8 percent per year, what is..

  Distributions is eligible for rollover treatment

Which of the following distributions is eligible for rollover treatment?

  Consider two stocks-expected return and standard deviation

Consider two stocks, Stock D, with an expected return of 11 percent and a standard deviation of 26 percent, and Stock I, an international company, with an expected return of 9 percent and a standard deviation of 19 percent. The correlation between th..

  What is the value of a share of stock

Joker stock has a sustainable growth rate of 10 percent, ROE of 19 percent, and dividends per share of $1.60. If the P/E ratio is 16.5, what is the value of a share of stock?

  The stock is now selling ex-rights

The Holly Corporation has a new rights offering that allows you to buy one share of stock with 4 rights and $25 per share. The stock is now selling ex-rights for $30. The price rights-on is: A. $21.00. B. $25.00. C. $30.00. D. $31.25. E. impossible t..

  Describe forward-futures and options foreign currency market

Describe forward, futures and options foreign currency markets, and discuss how they demonstrate arbitrage problems in international finance. Use a minimum of three resources to support your discussion.

  Work of the external independent auditor

The work of the external independent auditor includes a letter that states that the financial information represents fairly the financial position of the company and that these statements were:

  The demand for pepsi is more elastic than demand for soda

The effect of taxing demanders are the same as taxing suppliers. The demand for Pepsi is more elastic Than the demand for soda.

  Common stock that pays an annual dividend

Leslie's Unique Clothing Stores offers a common stock that pays an annual dividend of $2.70 a share. The company has promised to maintain a constant dividend. How much are you willing to pay for one share of this stock if you want to earn a 12.70 per..

  Manufacturing and service-based businesses

Engineered Products Inc. (EPI) is a conglomerate with both manufacturing and service-based businesses. One of EPI’s larger manufacturing plants has been asked to increase its recycling efforts or face a major increase in its disposal fees.

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