Calculate the irr, Business Economics

Assignment Help:

You are evaluating a project that has the following cash flows: -100 today, then cash inflows of 20, 30, and 40 for the next three years, respectively, and thereafter cash flows grow at 5% per year forever. (E.g. the cash flow at time 4 is 5% greater than 40 or 42).

a. What is the NPV if the discount rate is 15%?

b. What is the IRR (show to at least one decimal place)?


Related Discussions:- Calculate the irr

Economics, Quantitative demand for watermelons = 50-3P(wm) - 20P(hd) + 10 P...

Quantitative demand for watermelons = 50-3P(wm) - 20P(hd) + 10 P(sc) + 0.001(income) P(wm) = $4.00 P(hd) = $3.00 P(sc) = $2.00 Income = $40,000 Quantity supply of watermelons = 2

Briefly discuss the forms of legitimate governments, Question 1 Explain t...

Question 1 Explain the Orthodox and Liberal perspective of political theory Question 2 Critically analyse the institutional approach in comparative political analysis

What is effectiveness of international monetary fund, What is effectiveness...

What is effectiveness of International Monetary Fund, in the promotion of development? Effectiveness of International Monetary Fund, in the promotion of development: Interna

Calculate potential gross income, (a)  Assume that Purchase Price is equal ...

(a)  Assume that Purchase Price is equal to initial Market Value (b) Your Market Rent starts at the indicated level and increases by this factor for all of Year 2 and for each y

Do all developing economies have same underlying problems, Do all developin...

Do all developing economies have same underlying problems? Less developed countries are similar but exceptional. The impact of a problem will vary depending upon circumstances

Distinguish between a firm''s fixed cost and variable cost, QUESTION (a...

QUESTION (a) Explain the Law of demand and the factors affecting demand for a product or service. (b) Explain and illustrate diagrammatically how the market demand for a pro

Samantha Hill, Problem-solving question: Use the following data for a firm’...

Problem-solving question: Use the following data for a firm’s output at various levels of employment (L) to calculate: a) its marginal physical product of labor (MPPL) schedule; (

Business policy & environment, various approaches followed by FMCG companie...

various approaches followed by FMCG companies in test marketing

Standard deviation of the sample of interest rates, The following data show...

The following data show the interest rates on 4 randomly chosen personal loans (in percents): 6.1, 5.7, 11.1, 9. Calculate the standard deviation of the sample of interest rates. (

Exception to law of demand, case study on diamond price and petrol price fo...

case study on diamond price and petrol price for exxception to the law of demand

Write Your Message!

Captcha
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