Calculate the expected irr of new portfolio with new project

Assignment Help Financial Management
Reference no: EM131532574

You have estimated the IRR for a new project with the following probabilities: Possible IRR Value Probability 4% 5% 7% 15% 10% 15% 11% 50% 14% 15% a. Calculate the expected IRR of the project. b. Calculate the standard deviation of the project. c. Calculate the coefficient of variation of the new project. d. Calculate the expected IRR of the new portfolio with the new project. The current portfolio has an expected IRR of 9% and a standard deviation of 3% and will represent 60% of the total portfolio. e. Would you advise accepting this new project? Justify your answer.

Reference no: EM131532574

Questions Cloud

Number of scenarios that hamper communication : And to this end, below are a number of scenarios that hamper communication. What would you do to solve each?
Uses the direct method to allocate costs : Medusa uses the direct method to allocate costs.
What are ethical concerns regarding the presidents actions : Which administrative agency governs regulatory compliance of the manufacturer and what are the ethical concerns regarding the President's actions
Divulging confidential information about a company future : Describe a decision about divulging confidential information about a company's future.
Calculate the expected irr of new portfolio with new project : You have estimated the IRR for a new project with the following probabilities. Calculate the expected IRR of the new portfolio with the new project.
Calculate the annual payment to the lender : Calculate the annual payment to the lender. What is the present worth of the interest payments on the loan of part a?
Global industry structure and competitive dynamics : What changes in the global industry structure and competitive dynamics allowed challengers from Australia and other New World countries to take market share.
Explore the components of statement analysis : Explore the components of statement analysis-a complex skill that can help you determine the level of deception in a witness's or a suspect's statement
Global industry structure and competitive dynamics : What changes in the global industry structure and competitive dynamics allowed challengers from Australia and other New World countries to take market share

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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