The internal rate of return is

Assignment Help Financial Management
Reference no: EM13939532

The internal rate of return is

a. the discount rate that makes NPV negative and the PI greater than one.

b. the discount rate that equates the present value of the cash inflows with the present value of the cash outflows.

c. the discount rate that makes the NPV positive.

d. the rate of return that makes the NPV positive.

Reference no: EM13939532

Questions Cloud

What is the theme of the story : In what way is setting significant in Kate Chopin's "The Story of an Hour"? What is the theme of the story and What are some of the aspects of Sammy's personality in "A & P" that we like/dislike
How much income must floyd report in total : How much income must Floyd report in total on this sale in the second year?
Examples of workplace-organisational communication : YOUR TASK : Analyse examples of workplace/organisational communication you have been personally involved in, using the models and theories of communication practice discussed in this unit thus far.
What rate must be quoted to the customer : A payday lender makes a loan to a customer. The customer is given $200 today and she must repay $230 in two weeks to the lender. What rate must be quoted to the customer? An investment banker agrees to a firm commitment offering of 1.2 million shares..
The internal rate of return is : The internal rate of return is
The after-tax profit margin is forecasted : Broussard Skateboard's sales are expected to increase by 20% from $7.4 million in 2013 to $8.88 million in 2014. Its assets totaled $2 million at the end of 2013. Broussard is already at full capacity, so its assets must grow at the same rate as proj..
Implementing quality improvement initiatives : How do information management systems assist management in implementing quality improvement initiatives? Discuss how practice, policies, and procedures can assist management in enduring continued adherence to proposed initiatives
Utilize a clinical decision making framework : Utilize a clinical decision making framework that incorporates ethical & comprehensive assessment and person-centred nursing care while maintaining choice and dignity for older people.
Equivalent annual cost problem : L web is bidding to provide web services for a company. The company pays its current provider $10,000 per year for hosting its web page, handling transactions, etc.  If L web's cost of capital is 9.9%, can it bid less than $10,000 per year to provide..

Reviews

Write a Review

Financial Management Questions & Answers

  What is the highest rate you can afford on apr loan

You want to borrow $87,000 from your local bank to buy a new sailboat. You can afford to make monthly payments of $1,550, but no more. Assuming monthly compounding, what is the highest rate you can afford on a 72-month APR loan?

  What is the cross-exchange rate

Suppose that a US interest rate is 4% and the forward premium for the Korean won is 1%. What is the interest rate in the Korean market? A currency trader observes that in the spot exchange market, one U.S. dollar can be exchanged for 12.55 Mexican pe..

  What is the current price of the stock

Malcolm Manufacturing, Inc. just paid a $2.00 annual dividend (that is, D0 = 2.00). There will be no dividend payment for the next two years (i.e., at t = 1 and t = 2). In year three (t = 3), the dividend is expected to be $5.00. T

  Find the required rate of return for hamlin in new venture

Hamlin Pharmaceuticals has $10 million in debt and $70 million in equity. Its tax rate is 35%, cost of debt 6%, and beta 1.5. The riskless rate is 3% and the expected return on the market 13%. Hamlin would like to start a newspaper using its existing..

  The bond is callable after nine years with the call price

You own a bond with the following features: face value of $1000, coupon rate of 6% (semiannual compounding), and 15 years to maturity. The bond has a current price of $1,200. The bond is callable after nine years with the call price of $1100. What is..

  Hedging using foreign currency derivatives scout finch is

hedging using foreign currency derivatives scout finch is the chief financial officer cfo of salem manufacturing a u.s.

  What is the effective annual rate on this loan

You have a car loan with a nominal rate of 6.10 percent. With interest charged monthly, what is the effective annual rate (EAR) on this loan? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit th..

  Well-diversified portfolio

Assume that you hold a well-diversified portfolio that has an expected return of 11.0% and a beta of 1.20. You are in the process of buying 1,000 shares of Alpha Corp at $10 a share and adding it to your portfolio. Alpha has an expected return of 20...

  What is the current yield to maturity for these bonds

Fifteen years ago, Namson and Co. issued 25-year coupon bonds. The yield to maturity at the time of issuance was 10 percent and the bonds sold at 120% of par value. The bonds are currently selling at 85% of par value. What is the current yield to mat..

  Measuring and monitoring strategy

Measuring and Monitoring Strategy

  What is the future value-compounded quarterly

What is the future value of $1,400, placed in a saving account for four years if the account pays 0.10, compounded quarterly?

  What is the difference in value of the bond

Shelly Inc. bonds have a coupon rate of 10%. The bonds mature in 10 years. Their par value is $1,000 if your required rate of return is 12%. What is the difference in value of the bond if its coupon is paid semiannually compared to annually?

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