Calculate the internal rate of return

Assignment Help Financial Management

Reference no: EM131622110

As the Chief Financial Officer of a management consulting company you are offered the following project that involve an initial capital expenditure followed by subsequent projected yearly cash inflows. Initial expenditure: 160000

Year Cash Flow

1 20000

2 35000

3 60000

Evaluate this project by calculating the followings:

a) Discounted payback period using a 5.4% discount rate and 1.6% discount rate.

b) Net present value using a 5.4% and a 1.6% discount rate

c) Identify the most profitable project

d) Calculate the internal rate of return.

Reference no: EM131622110

Questions Cloud

Difference between recombining and non-recombining tree : Explain the difference between a recombining and non-recombining tree. Which one is more desirable? Explain why?

Research a company who experienced equipment losses : Research a company who experienced equipment losses and how the company recovered? Where there any problems suggested as listed below with the employers?

Prepare the adjusting entry that should be recorded : Prepare the adjusting entry that should be recorded to fairly present the June 30 financial statements

Technology cycles and technological innovation : The research on technology cycles and technological innovation applies only to high-tech products developed in the bioengineering, robotics, and computer.

Calculate the internal rate of return : Identify the most profitable project. Calculate the internal rate of return.

Define edge by sylvia plath : How does knowing this information affect your understanding of the poem

Calculate the return on holding the stock for a day : Calculate the return on holding the stock for a day (this should be the change in price over the closing price without the change).

Post the balance from the unadjusted trial balance : Post the balance from the unadjusted trial balance and the adjusting entries in to the T-accounts. Prepare an adjusted trial balance

Semi-annual cash-flows associated with this situation : What are the semi-annual cash-flows associated with this situation?

User Account

All Pages