What is the internal rate of return for this project

Assignment Help Financial Management

Reference no: EM131937665

A firm is considering investing in a project. The firm has a WACC of 11.75%. This project is expected to yield positive cash flows of $10,000 in years 1 and 2, followed by positive cash flows of $20,000 in years 3-5. The initial cost of the project is $40,000 today.

1. What is the Return on Investment (ROI) for this project?

2. What is the Internal Rate of Return (IRR) for this project?

Reference no: EM131937665

Questions Cloud

Define types of set rates in order to support your response : Suggest at least one (1) method by which capitation rates are set for health maintenance organizations in Medicare. Provide one (1) example of an HMO.

Identify two of the economic principle : Identify two of the economic principle(s) or topic(s) that you want to learn more about ... and why.

Assist with a recreation program in your community : Recreation Program Planning Practical Assignment - A two page synopsis of your experience must be provided to the instructor at the conclusion of the event

What is the average total cost function for firm : (a) What is the average total cost function for this firm? Provide your answer as a function.

What is the internal rate of return for this project : What is the Return on Investment (ROI) for this project? What is the Internal Rate of Return (IRR) for this project?

Analyze the concept of respondeat superior : Analyze the concept of respondeat superior and concept of corporate negligence as they apply to responsibilities of the hospital's governing body.

Focus on a particular company and explain their methods : You could choose to cover the topic in a broad way, or you could choose to focus on a particular company and explain their methods of communicating globally.

What is refactoring and who performs dependency analysis : What is refactoring? Who performs dependency analysis? Should we prioritize certain test cases when there are an excessive number of possible configurations?

What are the pros and cons of globalization : What are the pros and cons of globalization? How can a country prepare for it? What needs Canada to do to benefit from the globalization?

User Account

All Pages