Cash flows-What is the IRR for this project

Assignment Help Financial Management
Reference no: EM131185170

A project has the following cash flows: Year Cash Flow 0 $ 73,000 1 – 54,000 2 – 27,600 Requirement 1: What is the IRR for this project? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) Internal rate of return % Requirement 2: What is the NPV of this project if the required return is 5 percent? (Do not round intermediate calculations. Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places (e.g., 32.16).) Net present value $ Requirement 3: What is the NPV of the project if the required return is 0 percent? (Do not round intermediate calculations. Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places (e.g., 32.16).) Net present value $ Requirement 4: What is the NPV of the project if the required return is 24 percent? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g.,32.16).) Net present value $ I have posted this question twice and the answers keep returning incorrect.

Reference no: EM131185170

Questions Cloud

What is the hospitals current receivables balance : Fargo Memorial Hospital has annual patient service revenues of $14,400,000. It has two major third-party payers, and some of its patients are self-payers. What is Fargo's average collection period? What is the hospital's current receivables balance?
What is the addition to retained earnings : Shelton, Inc., has sales of $405,000, costs of $193,000, depreciation expense of $58,000, interest expense of $39,000, and a tax rate of 40 percent. What is the net income for the firm? Suppose the company paid out $48,000 in cash dividends. What is ..
Economic downturn that has devastated our economy : A few years ago, companies like AIG, who had a hand in the cause of the economic downturn that has devastated our economy, were planning to give or actually gave out huge golden parachutes to the same executives who led and approved of the companies ..
What is value of shareholders equity account for this firm : Sankey, Inc., has current assets of $4,000, net fixed assets of $23,100, current liabilities of $2,500, and long-term debt of $12,400. What is the value of the shareholders' equity account for this firm? How much is net working capital?
Cash flows-What is the IRR for this project : A project has the following cash flows: Year Cash Flow 0 $ 73,000 1 – 54,000 2 – 27,600 Requirement 1: What is the IRR for this project? What is the NPV of the project if the required return is 0 percent? What is the NPV of the project if the require..
Calculate interest payment-complete amortization schedule : You have just been granted a business loan of $1,000,000. The terms of the loan requires that you pay off the loan in quarterly installments over a period of ten years. The bank is charging you an APR of 10%, compounded monthly. Calculate the interes..
Compute the non-operating cash flows : You have been asked by the president of your firm to evaluate the proposed acquisition of new special-purpose equipment. The equipment's base price is $500,000, and another $50,000 for its installation costs. The equipment falls into the MACRS 3-year..
Similarities between net present value-profitability index : Explain the differences and similarities between net present value (NPV) and the profitability index (PI). Should financing costs be included as an incremental cash flow in capital budgeting analysis? Explain the use of real and nominal discount rate..
What is the price of call option on widget shares : The current spot price of a Widget share is $48. One year from now the stock price can be either high ($50 per share) or low ($46 per share). The annual risk-free interest rate is 10%. What is the price of a call option on 100 Widget shares, with an ..

Reviews

Write a Review

Financial Management Questions & Answers

  New bonds offer in order to sell at face value

General Matter’s outstanding bond issue has a coupon rate of 8%, and it sells at a yield to maturity of 7.00%. The firm wishes to issue additional bonds to the public at face value. What coupon rate must the new bonds offer in order to sell at face v..

  Treasury stock method of calculating diluted earnings share

Which statement would be most consistent with the Treasury Stock Method of calculating diluted earnings per share?

  This case is intended to be an introduction to the various

this case is intended to be an introduction to the various methods used in capital budgeting and looks at some of the

  What is the operating cash flow and ocf

Daniel's Market has sales of $36,600, costs of $28,400, depreciation expense of $3,100, and interest expense of $1,500. If the tax rate is 34 percent, what is the operating cash flow, OCF?

  A normal term structure of interest rates would depict

Commercial paper offers which of the following advantages to the issuer? A "normal" term structure of interest rates would depict. Money markets include which of the following securities? In break-even analysis, the contribution margin is defined as...

  Before-tax component costs of equity-preferred stock

Suppose that MNINK Industries’ capital structure features 63 percent equity, 7 percent preferred stock, and 30 percent debt. Assume the before-tax component costs of equity, preferred stock, and debt are 11.60 percent, 9.50 percent, and 9.00 percent,..

  The yield to maturity on a bond is the rate of return

The yield to maturity on a bond is the rate of return that equates to the present value of the bond's future cash flows with the bonds

  What limitations might court consider imposing

Advance Technology Consultants, Inc. (ATC), contracted with RoadTrac, LLC, to provide software and client software systems for the products of global positioning satellite (GPS) technology being developed by RoadTrac. RoadTrac agreed to provide ATC w..

  Operating and capital leases

"Operating and Capital Leases" Please respond to the following: From the e-Activity, analyze the results of the proposed changes to lease accounting on operating and capital leases. Identifying how the right-of-use model will impact financial reporti..

  What is hastings required return

Hastings Entertainment has a beta of 0.64. If the market return is expected to be 13.80 percent and the risk-free rate is 7.80 percent, what is Hastings’ required return? (Round your answer to 2 decimal places.)

  The pretax or the aftertax cost of debt

Jiminy's Cricket Farm issued a 30-year, 8.4 percent semiannual bond 9 years ago. The bond currently sells for 90.5 percent of its face value. The company’s tax rate is 30 percent. What is the pretax cost of debt? What is the aftertax cost of debt? Wh..

  Company pays current dividend of per share of common stock

A company pays a current dividend of $1.20 per share of common stock. The annual dividend will increase by 3%, 4% and 5%, respectively, over the next three years, and by 6% per year thereafter. The appropriate discount rate is 12%. What is the price ..

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