Calculate the precise irr for both projects

Assignment Help Financial Management
Reference no: EM132023077

Table Z Project A Project B
Initial Investment $50,000 $55,000
Year Operating Cash Inflows Operating Cash inflows
1 $15,000 $30,000
2 15,000 25,000
3 15,000 10,000
4 15,000 5,000
5 15,000 5,000
Average $15,000

$15,000

Calculate the precise IRR for both projects. Please show all the calculations . Cost of the capital at 12%.

Reference no: EM132023077

Questions Cloud

Strengths and weaknesses of the supply chain logistics : What are some of the strengths and weaknesses of the supply chain logistics / materials management concepts and how can I better understand them?
What is the amount of the last payment : What amount of time will be required to pay off the mortgage if you continue to make the original monthly payments? What is the amount of the last payment?
What is the best known index of that price weighted variety : Tahiji is a small island in the south Pacific where the stock exchange has only two listed stocks.
Competitive strategy choices in strategic compensation : When looking at competitive strategy choices in strategic compensation what's a company that uses a lowest cost strategy and one that uses a differentiation
Calculate the precise irr for both projects : Calculate the precise IRR for both projects. Please show all the calculations . Cost of the capital at 12%.
What are the monthly payments : You take out a 30-year $300,000 mortgage loan with an APR of 9 percent and monthly payments. What are the monthly payments?
Who should be compensated for crimes of the past : Who owes who what? Who is to pay for these crimes? Who should apologize? Who should be compensated for crimes of the past
Accounts receivables from planned relaxation of credit : If the firm requires a return of 13.3 percent, what the cost of investing in the extra accounts receivables from the planned relaxation of credit standards?
How much will you pay for the companys stock today : Take Time Corporation will pay a dividend of $4.75 per share next year. The company pledges to increase its dividend by 7.5 percent per year, indefinitely.

Reviews

Write a Review

Financial Management Questions & Answers

  What is the current value of operations for dozier

What is Dozier's horizon value? What is the current value of operations for Dozier?

  Compute the weighted average cost of capital

If the market risk premium is 9% and the risk-free rate is 3%, compute the weighted average cost of capital if the firm's tax rate is 30%.

  What is the most that you should pay for the annuity

You just inherited some money and a broker offers to sell you an annuity that pays $9,000 at the end of each year for 20 years, with the first payment coming 5 YEARS FROM TODA. You could earn 5% on your money in other investments with equal risk. Wha..

  Net-zero type of transaction

Some argue that the actions of the Fed since 2008 have been a net-zero type of transaction (i.e. has had no effect on yields). In a few short sentences detail one argument that it is a net-zero type of transaction, and one counter-argument to this.

  True of changes in cash discount period

Which of the following is true of changes in cash discount period?

  Depreciated on straight-line basis down to zero

Project Alpha requires an immediate investment of $50,000 that will be depreciated on a straight-line basis down to zero

  Under the expectations theory-calculate the two year today

Suppose the 1-year rate is 2.5% today, and next year's 1-year rate is 3%. Under the Expectations Theory, calculate the 2 year today.

  The capital components to finance investment

Calculate the amounts needed from each of the capital components to finance this investment.

  Considering a new three-year expansion project

Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.88 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life.

  Inventory is a highly liqiuid current asset

Dun and Bradstreet uses statistical models to analyze credit risk. Inventory is a highly liqiuid current asset.

  What is the beginning mortgage loan repayment

What is the beginning mortgage loan repayment at the beginning of each month? What is the net amount that Mr Grant has to pay in each month?

  What is the highest rate you can afford

Assuming monthly compounding, what is the highest rate you can afford on a 72-month APR loan?

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