User Account

All Pages

What is its irr? is the project acceptable

Assignment Help Finance Basics
Reference no: EM131108720

You wish to evaluate a project requiring an initial investment of $45,000 and having a useful life of 5 years. What minimum amount of annual cash inflow do you need if your firm has an 8% cost of capital? If the project is forecast to earn $12,500 per year over the 5 years, what is its IRR? Is the project acceptable?

Reference no: EM131108720

Questions Cloud

Middle of the distribution with respect to processing time : The time it takes to process phone orders in a small gift shop is normally distributed with a mean of 6 minutes and a standard deviation of 1.24 minutes. what cutoff values would separate the 95% of orders that are in the middle of the distribution w..
The company is expected to operate profitably in the future : (Two Temporary Differences, One Rate, Beginning Deferred Taxes, Compute Pretax Financial Income) The following facts relate to Mc Kane Corporation.
Speedy lube for an oil change to changing oil : Susan switches from going to Speedy Lube for an oil change to changing oil in her own car herself. Which of the following is correct?
Alternative with the largest initial investment expense : Compare two competing, mutually exclusive new machines that have only cost data given and tell which of the following statements is true regarding the present worth of the incremental investment at your investment interest rate. If it is greater than..
What is its irr? is the project acceptable : You wish to evaluate a project requiring an initial investment of $45,000 and having a useful life of 5 years. What minimum amount of annual cash inflow do you need if your firm has an 8% cost of capital? If the project is forecast to earn $12,500 pe..
Cascade company had a net deferred tax liability : Indicate the manner in which deferred taxes should be presented on Cascade Company's December 31, 2010, balance sheet.
Consider an economy in which two factors of production : Consider an economy in which two factors of production , (labor and capital), produce two goods, (capital intensive pharmaceuticals and labor-intensive clothing). Suppose that both factors of production are freely mobile across both industries andtha..
Compare and contrast the internal rate of return approach : Compare and contrast the internal rate of return approach and the net present value approach to capital rationing. Which is better? Why?
Which one does not represent a complementary system : According to opponent-process theory, all but one of the pairs below represent complementary systems. Which one does NOT represent a complementary system?

Reviews

Write a Review

Finance Basics Questions & Answers

  Volpe corporations traded call options

An investor who writes standard call options against stock held in his or her portfolio is said to be selling what type of options and for Volpe Corporation's traded call options

  Assets and the correlation levels

Suppose we have two assets, A and B. What correlation levels between the two assets will yield diversification benefits in terms of portfolio risk reduction?

  Will felix recognize any income when he collects the account

Your client, Midwest Products, Inc. (MPI), is a closely-held, calendar-year, accrual-basis corporation located in Fowlerville, Michigan.  MPI has two operating divisions.  One division manufactures lawn and garden furniture and decorative objects (fu..

  Computation of the internal rate of return of capital

Computation of the Internal rate of Return of capital project and What is the IRR for the following project if its initial cost

  Question is about the role of investment banks

What is the role of investment banks in IPOs? How do they make their money?

  The town''s population is expected to grow

A small town has a current population of 20,000 permanent residents. The town's population is expected to grow at a rate of only 0.5% per year at least for the next t

  Determine and plot the density function of z

We say that Z is exponentially distributed with parameter A > 0 in the distribution function of Z is given by:P(Z

  Objective type questions cost of capital based on capm

Objective type questions Cost of Capital based on CAPM and Companies can issue different classes of common stock

  What is the present value of the stram of evas

What is the investment's NPV? What is the EVA each period? What is the present value of the stram of EVAs?

  You are considering implementing a lockbox system for your

you are considering implementing a lockbox system for your firm. the system is expected to reduce the average

  A coin is thrown until a head occurs and the number x of

a coin is thrown until a head occurs and the number x of tosses recorded. after repeating the experiment 256 times we

  What is the real risk-free rate of return r disregard

suppose 1-year t-bills currently yield 5.00 and the futureinflation rate is expected to be constant at 3.10 per year.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd