What is the irr of investment? opportunity

Assignment Help Financial Management
Reference no: EM131992553

You are considering an investment in a clothes distributer. The company needs $ 104,000 today and expects to repay you $ 129,000 in a year from now. What is the IRR of this investment? opportunity? Given the riskiness of the investment? opportunity, your cost of capital is 10%. What does the IRR rule say about whether you should? invest?

Reference no: EM131992553

Questions Cloud

Company stock price is due to systematic or marketwide risks : As we have seen much of the volatility in a company’s stock price is due to systematic or marketwide risks.
Promising to pay remainder of cost in semiannual payments : John Fare purchased $18,000 worth of equipment by making a $3000 down payment and promising to pay the remainder of the cost in semiannual payments
What is the book value per share and earnings per share : If Val's Volleyball Supply's common stock is currently selling at $9.60 per share, what is the book value per share and earnings per share?
Difference between proportional and progressive taxes : Provide an explanation of the difference between proportional and progressive taxes.
What is the irr of investment? opportunity : What is the IRR of this investment? opportunity?
What is corporate governance and block ownership : What is corporate governance? What is block ownership? How does it affect corporate governance?
What is the current yield and expected capital gains yield : What is the current yield? What is the expected capital gains (or loss) yield for the coming year?
Advertising campaign for its latest dessert product : Kokomochi is considering the launch of an advertising campaign for its latest dessert product, the Mini Mochi Munch.
What will be their tax savings for the first year : John and Cheryl just borrowed $26,830, on a home equity line of credit. What will be their tax savings for the first year ending December? 31?

Reviews

Write a Review

Financial Management Questions & Answers

  Compute kelsons short-run supply curve for product

What does this function imply about the effect of the law of the law of diminishing returns on Kelson's short-run cost function and calculate the marginal cost of production at 1500, 2000, and 3500 units of output.

  About arbitrage in foreign exchange markets-futures contract

about arbitrage in foreign exchange markets and about foreign exchange forward and futures contracts.

  Performance management used by nonprofit organization

What are strategies for performance management used by a nonprofit organization?

  How much interest would they earn over the life of account

How much interest would they earn over the life of the account?

  Determine their standard deduction and exeption

The Lees, a family of two adults and two dependent children under age 16, had a gross annual income of 68,000 for 2014. Determine their standard deduction, exeption, and child tax credit amounts as well as thier marginal and average tax rates, assumi..

  The loss is settled on pro rata basis by the insurers

how much of the loss will be covered by each policy if the loss is settled on a pro rata basis by the insurers?

  Economic value added created or destroyed drew? concrete

What does Economic Value Added? measure? What is the Economic Value Added? (EVA) created or destroyed by Drew? Concrete?

  Interest-on-interest

Interest-on-Interest Consider a $2,000 deposit earning 6 percent interest per year for 5 years.

  Retirement account plan

Starting next month, if you make monthly deposits of $436 into a retirement account that earns 4% interest compounded monthly, how large will your retirement account be in 29 years? (Do not include the dollar sign ($). Enter rounded answer as directe..

  What is the percentage of sales forecasting method

What is the percentage of sales forecasting method? What are some of the limitations financial analysts should be aware of in applying this method?

  What the net inflow or outflow is as measured

Bronco Co. is a U.S.-based MNC that has subsidiaries in Spain and Germany. Both subsidiaries frequently remit their earnings back to the parent company. The Spain subsidiary generated a net outflow of €1,000,000 this year, while the German subsidiary..

  What is the portfolio variance

What is the portfolio variance?

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