Compute the irr for each investment

Assignment Help Econometrics
Reference no: EM13218286

Consider an investment project with the following cash flows: n Porject A Project B 0 -$150,000 -$120,000 1 $30,000 $25,000 2 $25,000 $15,000 3 $120,000 $110,000

A) Compute the IRR for each investment

B) At MARR= 15% determine the acceptability of each project

C) if A and B are mutually exclusive projects, which project would you select on the basis of the rate of return on incremental investment?

Reference no: EM13218286

Questions Cloud

Why start of a hyperinflation is related to fiscal policy : Although "inflation is always and everywhere a monetary phenomenon," explain why: a. the start of a hyperinflation is typically related to the fiscal policy situation, and b. the end of a hyperinflation is usually related to changes in fiscal poli..
Show the optimal expected number of packets : Note that after a collision, the expected numbers are slightly different in two systems, but the difference is unimportant since collisions are rare.
How would you rank these in relative importance : Most would agree the six factors in the following list are important in determining whom to hire and promote:
Determine the image frequency and the local oscillator : 1-for an FM reciever tuned to 94.5 MHZ using high side-injection and a first IF of 10.7 MHZ, Determine the image frequency and the local oscillator
Compute the irr for each investment : Consider an investment project with the following cash flows: n Porject A Project B 0 -$150,000 -$120,000 1 $30,000 $25,000 2 $25,000 $15,000 3 $120,000 $110,000 A) Compute the IRR for each investment B) At MARR= 15% determine the acceptability of ..
What is the sinusoidal expression for the current : The voltage across a 0.2 H coil is given. What is the sinusoidal expression for the current?
Find the zener voltage at a current : a 9.1 v zener diode exhibits its nominal voltage at a test current of 28 mA . at this current the incremental resistance is specified as 5 ohms . find Vz0 of the zener model . find the zener voltage at a current of 10 mA and at 100 mA.
How do the u.s. armed forces handle issues : Difference between allowing reverse discrimination in the wake of segregation and discriminating in the name of diversity indefinitely? How effective was the New Haven Fire Department's promotional system in 2003? How do the U.S. armed forces hand..
What can be said about the cross-price elasticity of food : Suppose a consumer purchases only two goods %u2013 food and clothing. Her preferences between two goods can be represented by the following utility function \(U(x,y)=x^{\alpha}y^{1-\alpha}\) where 0

Reviews

Write a Review

Econometrics Questions & Answers

  What combination of actions would be most consistent

(1) consumption = $400 billion; (2) investment = $40 billion; (3) government purchases = $90 billion; and (4) net exports = $25 billion. If the full employment level of GDP for this economy is $600 billion.

  What is its average variable cost at this level of output

Four Seasons Hair Salon is the only women's hair stylist in Lake View. A business consultant has estimated its monthly cost functions as follows: TC = 2000 + 80 Q + 0.05 Q 2 MC = 80 + 0.1 Q The firm is faced with the following demand: Qd = 800 - 4..

  Find what is the break-even enrollment

Macromedia is a relatively new company that offers computer training seminars on a variety of topics. In the seminars each student works at a personal computer, practicing the activity that the instructor is presenting. To introduce themselves to ..

  How you would select a random sample of three regular motels

Suppose the last five motels are "cut-rate" motels. Describe how you would select a random sample of three regular motels and two cut-rate motels. Three can be chosen from the first 20 motels in how many ways

  What is the price and deadweight loss

For what levels of output does your firm have economies of scale? Is this a case for natural monopoly Why (b)  Now assume you are a monopolist, and the demand for your product is P=2000-5Q. What price will you charge How much deadweight loss will ..

  What is the interpretation of the coefficient on ca

What is the effect of the age of the house on its price and calculate the goodness of fit of the equation and What is the interpretation of the coefficient on CA?

  Calculate what is the loss in consumer surplus

a. if televisions are sold in a perfectly competitive market, calculate the annual number sold. under what conditions will the market equilibrium be economically efficient b. suppose tv sets are banned. calculate the loss in consumer surplus as a r..

  How to book value schedule using the macrs

A corporation purchased a computer system for use by the firm's engineers. The system cost $500,000. At the end of its depreciable life, the salvage value for the system is $25,000. Compute the depreciation and book value schedule using the MACR..

  What is economics system

What is economics system? What are the types of economics system? Briefly explain each type of economics system by giving examples of nations that are close to each type

  Calculate real gdp for 2007

The Republic of Republic produces two goods/services, fish (F) and chips (C). In 2006, the 200 units of F produced sold for $3 per unit and the 500 units of C produced sold for $1 per unit. In 2007, the 300 units of F produced sold for $4 per unit..

  Determine what are the equilibrium price and quantity

Assume the demand function for basketballs is given by QD=150-3P+0.1i where P=the price of basketballs and I=average income of consumers. Also, assume the supply of basketballs is given by QS=2P. If the market for basketballs is perfectly competit..

  How to allocate between vanilla and chocolate ice cream

In particular, you love vanilla ice cream, and you love chocolate ice cream, but you love vanilla just a little bit more. Your ice cream utility function is given by U(V,C)=1.5V+C. Assume vanilla ice cream costs $2/gallon.

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