Calculate modified internal rate of return for project

Assignment Help Financial Management

Reference no: EM131923977

1. What is the net present value of a project that requires an initial investment of $96,000 and produces net cash flows of $22,000 per year for 7 years? Assume the discount rate is 14 percent.

2. What is the internal rate of return for a project that requires an initial outlay of $24,600 and generates a single cash inflow of $35,750 in 5 years?

3. Calculate the modified Internal rate of return for a project with the following cash flows. Assume a cost of capital of 13% Year Cash Flow 0 (25,000) 1 15,000 2 8,000 3 15,000

Reference no: EM131923977

Questions Cloud

What was total real return on investment : If the inflation rate was 3.1 percent over the past year, what was your total real return on investment?

Commercial bank practice and policy : A firm is reporting net income that is increasingly rising each year, but is experiencing negative cash flow from operations.

What is standard deviation of returns for lately lighthouse : What is the expected return for Lately Lighthouse, Inc.? What is the standard deviation of returns for Lately Lighthouse, Inc.?

Find the value of the perpetuity : Amy inherited a perpetuity with annual payments starting in six months. Find the value of the perpetuity on December 1st 2009,

Calculate modified internal rate of return for project : Calculate the modified Internal rate of return for a project with the following cash flows.

Annuity number of periods : How long will it take to pay off a loan of $45,000 at an annual rate of 9 percent compounded monthly if you make monthly payments of $550?

About as risky as firm existing assets : These two projects are equally risky and about as risky as the firm's existing assets. What is its cost of common equity?

Calculation of investment and calculation of cash flows : The number of Services will be estimated using moderate scenario. Calculation of Investment, Calculation of Cash Flows, Calculation of IRR

Binomial option pricing model to find price of put option : Please use binomial option pricing model to find the price of the put option.

User Account

All Pages