What is internal rate of return and will you accept reject

Assignment Help Financial Management
Reference no: EM13938098

A project has cash flows of -$152,000, $60,800, $62,300, and $75,000 for years 0 to 3, respectively. The required rate of return is 13 percent. Based on the internal rate of return of _____ percent for this project, you should _____ the project?

What is the internal rate of return and will you accept or reject the project?

Reference no: EM13938098

Questions Cloud

What is the role of the fe-s cluster in photosystem ii : What is the role of the Fe-S cluster in Photosystem II? Which of the following is NOT true about the light reactions of photosynthesis?
What price should you be willing to pay for the bond : Suppose a bond which makes annual coupon payments has a coupon rate of 10 percent and 5 years to maturity. You wish to purchase one of these bonds and you require an 11 percent return on your investment. What price should you be willing to pay for th..
Calculate amount of desired profit per unit of new toaster : Calculate the amount of desired profit per unit of the new toaster. Calculate the target cost per unit of the new toaster.
Learning strategies for international students : Choose one of the two case studies below to prepare an essay response. You must decide which area of communication theory studied this semester (Persuasion ) addresses the case study question. Review the relevant week's readings provided on the ..
What is internal rate of return and will you accept reject : A project has cash flows of -$152,000, $60,800, $62,300, and $75,000 for years 0 to 3, respectively. The required rate of return is 13 percent. Based on the internal rate of return of _____ percent for this project, you should _____ the project? What..
Mechanism to lift a ping pong ball : Design a four bar mechanism to lift a ping pong ball from one platform to another that is 100mm above the first (Does not have to be directly above). Provide a plot of the ping pong ball movement as it would be affected by this mechanism.
What is the total ordering cost of beta per year : What is the total ordering cost of Beta per year? What is the total carrying cost of Beta per year? What is the total cost of Aravan's inventory policy for Beta per year?
Prepare a more appropriate forecast of before tax : Prepare a more appropriate forecast of before tax profit related to the Indianapolis Craft Expo.
How should a middle eastern company evaluate the success of : How should a Middle Eastern company evaluate the success of a strategic alliance? Identify relevant criteria and discuss your reasons for including them. Describe why they are relevant across industries, cultures, and geographic locations.

Reviews

Write a Review

Financial Management Questions & Answers

  What is the cost of common equity

The current T-bill rate is 3%. The market return is 9%. The company has a beta of 2. What is the cost of common equity?

  Quarter to make the purchase using an interest rate

A testing agency needs to purchase $40,000 worth of equipment 2 years from now. How much should the agency put aside each quarter to make the purchase using an interest rate of 20% per year, compounded quarterly?

  What are the internal and sustainable growth rates

Better Burgers reported the following numbers (in millions) for the years ending February 2011 and 2012. What are the internal and sustainable growth rates? (Do not round intermediate calculations. What are the internal and sustainable growth rates u..

  Calculate the value of the tax shield one and tax shield two

The company has just ordered a new kiln for $480,000. Of this sum, $58,000 is described by the supplier as an installation cost. The company does not know whether the Internal Revenue Service (IRS) will permit to treat this cost as a tax-deductible f..

  What is the combined present value

What is the combined present value of $5,000 to be received in 5 years, $15,000 to be received in 10 years, and $25,000 to be received in 15 years with an interest rate of 9.0%? Your parents have decided they want to put money away today so that begi..

  Accounts receivable as shown on the balance sheet

Rocket City Space Camp has annual credit sales of $16 million. The average collection period is 35 days. What is the average investment in accounts receivable as shown on the balance sheet? A. $646,000 B. $824,000 C. $1,408,888 D. $1,534,247 E. $1,69..

  Indifferent between accepting the project and not accepting

Your firm is contemplating the purchase of a new $610,000 computer-based order entry system. The system will be depreciated straight-line to zero over its five-year life. It will be worth $66,000 at the end of that time. At what level of pretax cost ..

  How much long-term debt does blackwell automotive have

Tim Dye, the CFO of Blackwell Automotive, Inc., is putting together this year's financial statements. He has gathered the following balance sheet information: The firm had a cash balance of $23,015, accounts payable of $163,257, common stock of $313,..

  Goal of managerial accounting

Which of the following is not a goal of Managerial Accounting? A. provide information managers need for planning b. provide information managers need for market wide interest c. provide information managers need for control d. provide information man..

  What is value of the common stock-common stock valuation

(Common stock valuation) Gilliand Motor, Inc., paid a $4.39 dividend last year. If Gilliand’s return on equity is 19 percent, and its retention rate is 28 percent, what is the value of the common stock if the investors require a rate of return of 18 ..

  What is the APR of this loan and What is its EAR

We Cheat U Loans offer to loan you $6,000 at 6% simple interest for a five-year period. In order to make it easier for you to pay, they take each year’s interest of $360 and add it to the $6,000 principal to get $7,800 ($6,000 + 5 x $360).

  Bond that pays coupons annually is issued with a coupon rate

A bond that pays coupons annually is issued with a coupon rate of 5.3%, maturity of 30 years, and a yield to maturity of 8.3%. What rate of return will be earned by an investor who purchases the bond and holds it for 1 year if the bond’s yield to mat..

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