What is internal rate of return and will you accept reject

Assignment Help Financial Management
Reference no: EM13938098

A project has cash flows of -$152,000, $60,800, $62,300, and $75,000 for years 0 to 3, respectively. The required rate of return is 13 percent. Based on the internal rate of return of _____ percent for this project, you should _____ the project?

What is the internal rate of return and will you accept or reject the project?

Reference no: EM13938098

Questions Cloud

What is the role of the fe-s cluster in photosystem ii : What is the role of the Fe-S cluster in Photosystem II? Which of the following is NOT true about the light reactions of photosynthesis?
What price should you be willing to pay for the bond : Suppose a bond which makes annual coupon payments has a coupon rate of 10 percent and 5 years to maturity. You wish to purchase one of these bonds and you require an 11 percent return on your investment. What price should you be willing to pay for th..
Calculate amount of desired profit per unit of new toaster : Calculate the amount of desired profit per unit of the new toaster. Calculate the target cost per unit of the new toaster.
Learning strategies for international students : Choose one of the two case studies below to prepare an essay response. You must decide which area of communication theory studied this semester (Persuasion ) addresses the case study question. Review the relevant week's readings provided on the ..
What is internal rate of return and will you accept reject : A project has cash flows of -$152,000, $60,800, $62,300, and $75,000 for years 0 to 3, respectively. The required rate of return is 13 percent. Based on the internal rate of return of _____ percent for this project, you should _____ the project? What..
Mechanism to lift a ping pong ball : Design a four bar mechanism to lift a ping pong ball from one platform to another that is 100mm above the first (Does not have to be directly above). Provide a plot of the ping pong ball movement as it would be affected by this mechanism.
What is the total ordering cost of beta per year : What is the total ordering cost of Beta per year? What is the total carrying cost of Beta per year? What is the total cost of Aravan's inventory policy for Beta per year?
Prepare a more appropriate forecast of before tax : Prepare a more appropriate forecast of before tax profit related to the Indianapolis Craft Expo.
How should a middle eastern company evaluate the success of : How should a Middle Eastern company evaluate the success of a strategic alliance? Identify relevant criteria and discuss your reasons for including them. Describe why they are relevant across industries, cultures, and geographic locations.

Reviews

Write a Review

Financial Management Questions & Answers

  What is the equipments after-tax salvage value

Kennedy Air Services is now in the final year of a project. The equipment originally cost $24 million, of which 75% has been depreciated. Kennedy can sell the used equipment today for $6 million, and its tax rate is 35%. What is the equipment's after..

  Portfolio for risk-averse person and for risk-loving person

If you have some money to invest and there are a risk-free asset and several risky assets for you to pick up, how many preferable portfolios could you construct? Can you provide some advice on how to construct an optimal portfolio for a risk-averse p..

  Assume semi-annual coupon payments unless

Atlantis Fisheries issues zero coupon bonds on the market at a price of $417 per bond. Each bond has a face value of $1,000 payable at maturity. What is the yield to maturity of the bond? (Assume semi-annual coupon payments unless it is explicitly st..

  Bethany opened a store credit card to purchase a tv for 589

bethany opened a store credit card to purchase a tv for 589. she put the entire purchase on the credit card. her apr is

  Stock in an account with only the initial margin

If you shorted this stock in an account with only the initial margin, how much could the stock rise before you got a margin call? Assume the maintenance margin is 30%. Describe why you selected the stock for writing call options on and how this trans..

  Determine the cash inflows and outflows for each year

Determine the cash inflows and outflows for each year - evaluate the capital project by calculating the following metrics.

  Excess capacity-how large of increase in fixed assets

Walter Industries has $8 billion in sales and $1.3 billion in fixed assets. Currently, the company's fixed assets are operating at 95% of capacity. If Walter's sales increase 12%, how large of an increase in fixed assets will the company need to meet..

  What is the annual interest rate on a two-year loan

Unbiased Expectations Theory Suppose we observe the following rates: the interest rate for the next year is 6% and the one-year interest rate expected one year from now is 9%. What is the annual interest rate on a two-year loan?

  Expected return on an average investment in the market

You are considering the purchase of a common stock whose historical beta is .5. What rate of return should you require from this stock if the current risk free rate of return is 4% and the expected return on an average investment in the market is 11%..

  Evaluate a proposal to buy new milling machine

You must evaluate a proposal to buy a new milling machine. The base price is $142,000, and shipping and installation costs would add another $20,000. The machine falls into the MACRS 3-year class, and it would be sold after 3 years for $56,800. What ..

  Cash balances as result of implementing the lockbox system

It takes Cookie Cutter Modular Homes, Inc., about six days to receive and deposit checks from customers. Cookie Cutter’s management is considering a lockbox system to reduce the firm’s collection times. What is the reduction in outstanding cash balan..

  Compute the cost of internally generated equity

Given the following, compute the cost of internally generated equity (retained earnings) using the DCF approach: The par value of the firms outstanding 20 year 8% annual coupon debt is 1,000 and the debt currently has a market value of 800.

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