What is the internal rate of return on an investment

Assignment Help Financial Management
Reference no: EM131896511

1. What is the internal rate of return on an investment with the following cash flows?

Year               FCF ($mln)

1                      -87,400

2                      21,600

3                      48,900

4                      28,000

5                      4,170

2. What is the net present value of a project with the following cash flows if the required rate of return is 14 percent?

Year               FCF ($mln)

1                      -33,680

2                      10,796

3                      22,308

4                      4,170

3. What is the net present value of a project that has an initial cash outflow of $18,900 mln and the following cash inflows? The required return is 13.25 percent.

Year               FCF ($mln)

1                      -3,600

2                      4,200

4                      12,500

Reference no: EM131896511

Questions Cloud

What is the after-tax cost of debt : What is the after-tax cost of debt. The after-tax cost of debt for Tiny Tots is __%.
Banks cause them to take excessive risks on the theory : Does bailing out large banks cause them to take excessive risks on the theory that they are “too big to fail”?
Appliances pays constant quarterly dividend : Anthony's Appliances pays a constant quarterly dividend of $.35 per share.
What is the share price of heavy metal : Referring to your answer for Q1, if Heavy Metal has 50 million shares outstanding (and no debt) what is the share price of Heavy Metal?
What is the internal rate of return on an investment : What is the internal rate of return on an investment with the following cash flows?
Final product of security analysis is recommendation to buy : The final product of security analysis is a recommendation to buy, sell or hold the stock of a particular company.
Debt financing focuses management on the creation of value : Debt financing focuses management on the creation of value, thereby reducing conflicts of interest between managers and shareholders.
Optimal asset allocation in investment portfolio : Outline Stutzer's approach to determine the optimal asset allocation in an investment portfolio.
Futures market has created more unpredictability for stocks : Do you think futures market has created more unpredictability for stocks ?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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