What is the internal rate of return on this investment

Assignment Help Financial Management
Reference no: EM132048978

A company is planning to add a new diagnostic machine that will cost $20,000 and require annual maintenance expenses of $5,000. The machine has an expected life of 5 years. If the net cash flow the company receives each year will be $10,000 higher with the machine in operation what is the internal rate of return on this investment?

Reference no: EM132048978

Questions Cloud

Why is a changing target for the fed funds interest rate : Why is a changing target for the Fed Funds interest rate a more accurate indicator of the direction of monetary policy than a change in the discount rate?
Find the ytm interest rate : It is important to know what the standard rates are. Look atMoneyCafe.Find the YTM (interest rate).
Concept of comparative advantage : Why do nations trade? What is meant by the concept of "Comparative Advantage"? Could a nation be better off economically, if it practiced an isolation policy?
Explain steps researchers took to ensure generalizability : Post your explanation of who the sample is. Also explain steps researchers took to ensure generalizability.
What is the internal rate of return on this investment : If the net cash flow the company receives each year will be $10,000 higher with the machine in operation what is the internal rate of return on this investment?
How should gvc allocate transaction price to four products : Each product is properly classified as a separate performance obligation. How should GVC allocate transaction price to the four products using residual approach
Which concept or piece of new information most surprised you : What knowledge or insights gained from this course will be the most useful or important to you as you proceed with your career? Why?
Tax system and the equity of a tax system : What is the difference between the efficiency of a tax system and the equity of a tax system?
Briefly describe the seven types of financial institutions : List and briefly describe the seven types of financial institutions

Reviews

Write a Review

Financial Management Questions & Answers

  What would be most realistic

What kind of organization would you like to work for? What would be the best? What would be most realistic?

  Dividends are declining at an annual rate

The Retarded Company’s dividends are declining at an annual rate of 6 percent. The company just paid a dividend of $4 per share. You require a 16 percent rate of return. How much will you pay for this stock? The last dividend on Riverhawk Corporation..

  Why do you think a company would issue this type of bond

The Wall Street Journal reports a bond price of $582.50. These bonds are convertible into common stock. Why do you think a company would issue this type of bond?

  What was the actual return for google

What was the actual return for Google in 2012? What was the required return for Google in 2012?

  About the sell certain land

Roberta offers to sell certain land to Emily for $10,000. This offer is made by a letter, signed by Roberta and mailed on March 1, 1990. The letter also stated that the offer would be kept open until July 1, 1990. Discuss in detail whether there is a..

  Special considerations of annuities and time periods

How much money will your parents have at the end of six years to help you with graduate school, which you will start then?

  Capital needs analysis for retirement planning

How important is a capital needs analysis for retirement planning? Cite evidence that supports and contradicts the efficient market hypothesis.

  What is the expected utility bill for the property

If utilities are $2.10 per square foot and 40% fixed, what is the expected utility bill for the property?

  Delaying reduce projects coefficient of variation

The firm has a 75% chance if it invests -$1,500 a return of $500 for 7-years, and a 25% chance of returning $25 for 7-years. Calculate the effect of waiting on the project's risk, using the same data. By how much will delaying reduce the project's co..

  Expected to be constant over the project life

Operating cash flows are expected to be constant over the project's life. What is the project's NPV?

  The internal rate of return method to evaluate projects

Geronimo, Inc. is considering a project that has an initial outlay or cost of $220,000. The respective future cash inflows from its four-year project for years 1 through 4 are: $50,000, $60,000, $70,000, and $80,000, respectively. Geronimo uses the i..

  Calculate retirement cash flow-income from current assets

Which of the following is the last step when using the seven-step planner to determine the required current monthly savings that will meet a future retirement income objective? calculate retirement cash flow (shortfall or surplus). identify income fr..

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