Show example of internal rate of return, Financial Accounting

Assignment Help:

Q. Show example of Internal rate of return?

IRR (Internal rate of return) is a discounted cash flow investment appraisal method that calculates the discount rate which causes the net present value of an investment to become zero. An investment project is satisfactory if it has an IRR greater than the cost of capital of the investing company. It employs cash flows rather than accounting profits in the evaluation of an investment project. It as well takes account of the time value of money the concept that the value of a given sum of money decreases over time due to the opportunity cost of selecting one investment rather than the best available alternative. IRR considers all cash flows in excess of the life of an investment project and always gives correct advice provided that investment projects being compared are not mutually exclusive.


Related Discussions:- Show example of internal rate of return

Product costs and which are period costs, The costs that follow were extrac...

The costs that follow were extracted from the accounting records of various different manufacturers: 1.    Weekly wages of an equipment maintenance worker 2.    Marketing costs

Dispute resolution over termination of contracts, Question: a) Show the...

Question: a) Show the different parts of a bidding document for works. b) Describe  five advantages of Dispute Resolution over Termination of Contracts. c) Show the diffe

Estimate present value, Calculating Present Value [LO1]  An investment will...

Calculating Present Value [LO1]  An investment will pay you $43,000 in 10 years.  If the appropriate discount rate is 7 percent compounded daily, what is the present value?

Successive interest computations, Show that if an investment of P dollars d...

Show that if an investment of P dollars declines by 4% during a year , the balance at the end of the year is P(1-.04) that is P(.96) ?

Determine income statement , Mr. Wong currently running a small manufactur...

Mr. Wong currently running a small manufacturing business.  The Trial Balance of the business at 31 March 2011 is as follows:

Explain statement of financial condition, Q. Explain Statement of Financial...

Q. Explain Statement of Financial Condition? Statement of Financial Condition -Elementary FINANCIAL STATEMENT, generally accompanied by appropriate DISCLOSURES which describe t

What is the pension expense that cooper enterprises, The following informat...

The following information for Cooper Enterprises is given below: December 31, 2013 Assets and obligations Plan assets (at fair value) $200,000 Accumulated benefit obligation 370,00

explain the concept of materiality, You have recently been promoted to ass...

You have recently been promoted to assistant audit manager in SHAUNA & Co, a firm of Chartered Certified Accountants. Your first assignment in this new role is to supervise the aud

Prepare an investment plan, Question: Mada Air Ltd is thinking of diver...

Question: Mada Air Ltd is thinking of diversifying its activities in order to cope with the financial crisis. After careful evaluation its research and development team has pro

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