What is the internal rate of return of a project

Assignment Help Finance Basics
Reference no: EM131018657

9-1 A firm is evaluating an investment that costs $90,000 and is expected to generate annual cash flows equal to $20,000 for the next six years. If the firm's required rate of return is 10 percent, what is the net present value (NPV) of the project? What is its internal rate of return (IRR)? Should the project be purchased?

9-2 What is the internal rate of return (IRR) of a project that costs $45,000 if it is expected to generate $15,047 per year for five years?

9-5 Project K has a cost of $52,125 and its expected net cash inflows are $12,000 per year for eight years. The firm's required rate of return is 12 percent. Compute the projects:

(a) Traditional payback period (PB)

(b) Discounted payback period (DPB)

(c) Net present value (NPV)

(d) Internal rate of return (IRR)

Reference no: EM131018657

Questions Cloud

Which of the following accounts are closed at year end : Which of the following would not appear in a post-closing trial balance? a. Accumulated Depreciation, b. Unearned Service Fees, c. Accounts Receivable, d. Depreciation Expense
Explain how the gospel is both inclusive and exclusive : Define the [pre-] Gnosticism that St. Paul is addressing in Colossians. What is it basically? Elaborate regarding its core elements in terms of it occult teaching, ritualism, asceticism, and worship. Most importantly study Colossians 2 to explain ..
Write equation in slope-intercept form for libby budget line : Write an equation in slope-intercept form for Libby's budget line. Suppose that Libby maximizes her utility given budget line 1 when she selects a bundle that includes 20 sodas. How many balloons are in this optimal consumption bundle
What can we say about the demand curve : What effect would very bad weather destroying much of the wheat crop have on the market for wheat - What can we say about the demand curve
What is the internal rate of return of a project : What is the internal rate of return (IRR) of a project that costs $45,000 if it is expected to generate $15,047 per year for five years?
Does the list of accepted projects change from part 2 : Rank the projects using the profitability index. Considering the limit on funds available, which projects should be accepted?
Explain complexity or difficult of genuinely getting to task : Try to find and briefly discuss one or more passages from this chapter (a couple of examples) that : best explains the priority or importance that Irigaray sees in this aim. best explain the complexity or difficult of genuinely getting to this task.
What do you like best about your peers synthesis : What do you like best about your peer's synthesis? Is it clear what is being synthesized? Is it always clear which source your peer is talking about at any given moment?
What is the third acceptable method : Which method most equitably allocates the costs to the various products?

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the return on equity ratio

M&BS Life Corporation has a net profit margin of 10%. It has a total asset turnover ratio of 3X. The debt to total assets ratio is 50%. What is the return on equity ratio?

  Bank evaluation process

Assume that you are nearing graduation and have applied for a job with a local bank. The bank's evaluation process requires you to take an examination that covers several financial analysis techniques. The first section of the test asks you to add..

  How much did christina pay

Christina policy covered the medically necessary service performed in a nursing home setting. her total bill was $125,765. how much of Christina expenses was paid by her insurance policy? how much did Christina pay?

  What is the highest rate you can afford

Assume monthly compounding, what is the highest rate you can afford on a 60-month APR loan?

  What is the firms income tax liability

ABC company had a taxable income of $581,229 from operations after all operating costs but before interest charges of $58,390, dividends received of $76,648, dividends paid of $10,000, and income taxes. What is the firm's income tax liability?

  Write summary of the article that discusses union formation

Research a recent article that discusses union formation or union elections, and write a summary of the article. The article should be published within the past six months and should be at least two to three pages in length.

  Consider a discount bond with a face value

Consider a discount bond with a face value of $500 and a maturity date of January 1, 2019.a.  Suppose that on January 1, 2016, when the market's (nominal) yield to maturity is 6.0 percent per year, you buy the bond at price P1. What will P1 be?

  Which one of the following statements is correct concerning

Her loan requires 36 equal monthly payments of $450 each with the first payment due 30 days from today. Which one of the following statements is correct concerning this purchase?

  Which of the following is not considered a permanent source

1 which of the following is not considered a permanent source of financing?a. commercial paperb. preferred stockc.

  Qualities change based on different situations

What are poor qualities of a manager? Do the qualities change based on different situations (social environment, work environment, or home environment)? Do you agree with the results of your management quiz? Discuss. Format your essay consistent w..

  Important challenge facing the financial management

What is an important challenge facing the financial management of organizations today, and how would you go about addressing it? Explain.

  Large industries bonds sell for 106802 the bond life is 9

large industries bonds sell for 1068.02. the bond life is 9 years and the yield to maturity is 6.0. what must be the

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