Calculate the internal rate of return for this investment

Assignment Help Business Economics

Reference no: EM131391766

A) You will recieve annual benefit $129.5 for 10 years if you invest $1,000 today. Calculate the internal rate of return for this investment.

B) For the above a, you can get an increase of annual benefit $25 more if you increase the investment by $141.25 today. Calculate the internal rate of return for this incremental cash flow. When your MARR is 4%, decide if this increment of investment is acceptable or not.

C) For the above a, you can get the annual benefit $90 for an infinite period. Calculate the internal rate of return and decide if it is acceptable or not acceptable. MARR 4%.

Reference no: EM131391766

Questions Cloud

The four mutually exclusive alternatives : The four mutually exclusive alternatives below are being considered using the B/C method.

Unemployment affected by the increase in money supply : When using monetary policy, if the money supply increases, this will shift the LM curve right, decrease interest rates, increase output, and shift the AD curve right. How is unemployment affected by the increase in money supply? What does this look l..

Illustrate international equilibrium in the ricardian model : Show how the relative supply/relative demand (RS-RD) curve diagram may be used to illustrate international equilibrium in the Ricardian model. How would equilibrium change if the size of one of the countries doubled but labor productivity halved?

Describe a flexible exchange rate regime : In one paragraph, describe a flexible exchange rate regime and how it functions (you may use graphs for illustrations). Please list two nations (Name, Location, Capital, Currency, Central Bank, most significant sector of the economy) that have used o..

Calculate the internal rate of return for this investment : You will recieve annual benefit $129.5 for 10 years if you invest $1,000 today. Calculate the internal rate of return for this investment. For the above a, you can get an increase of annual benefit $25 more if you increase the investment by $141.25 t..

How different assumptions about market structure : Assume that the Good Tire company needs outside legal help and that the expected marginal benefit of this help is given by MB=$200- 2-L, where L equals hours per week of legal services. discuss how different assumptions about market structure, inform..

Using the depreciation methods : A 100,000 asset has a 20,000 salvage value after its 10 year useful life. Calculate the book value at the end of year 2 using the following depreciation methods.

When is the outcome where both play leave nash equilibrium : Alice and Betsy are playing a game in which each can play either of two strategies, "leave" or "stay". If both play the strategy "leave", then each gets a payoff of $100. If both play the strategy "stay" then each gets a payoff of $200. If one plays ..

Affirmative action programs in colleges and universities : Which of the following is NOT true about affirmative action programs in colleges and universities?

User Account

All Pages