Compute the IRR on the cash flow streams

Assignment Help Financial Management
Reference no: EM13948621

Compute the IRR on the following cash flow streams:

a. An initial investment of $22,986 followed by a single cash flow of $34,690 in year 6. (Round intermediate calculations to 0 decimal places, e.g. 1,251 and final answer to 2 decimal places, e.g. 15.25%.) IRR %

b. An initial investment of $1,074,075 followed by a single cash flow of $1,580,000 in year 4. (Round intermediate calculations to 0 decimal places, e.g. 1,251 and final answer to 2 decimal places, e.g. 15.25%.) IRR %

c. An initial investment of $2,175,412 followed by cash flows of $1,774,000 and $1,140,700 in years 2 and 4, respectively. (Round intermediate calculations to 0 decimal places, e.g. 1,251 and final answer to 2 decimal places, e.g. 15.25%.) IRR %

Reference no: EM13948621

Questions Cloud

External sources of funding favor a high or low payout ratio : Does Taxes on capital gains are deferred until the capital gain is realized, but taxes on dividends are due in the year in which they are received favor a high or low payout ratio? Does A firm has an established credit line for access to external sou..
Statement about payback period analysis : Which of the following statement about payback period analysis is NOT correct?
Understanding of constraints on dividend payments : Based on your understanding of constraints on dividend payments, identify the type of constraint this condition represents. Assume that all other factors held constant. Out of the following 3 factors, identify which factors tend to favor high or low ..
Current ratio can be obtained solely from the balance sheet : Current ratio can be obtained solely from the balance sheet. Total profit margin, or just called total margin, can be obtained solely from the income statement. Average collection period is used to evaluate account receivable performance. A smaller n..
Compute the IRR on the cash flow streams : Compute the IRR on the following cash flow streams: An initial investment of $22,986 followed by a single cash flow of $34,690 in year 6. An initial investment of $2,175,412 followed by cash flows of $1,774,000 and $1,140,700 in years 2 and 4, respec..
Why many people tell new converts to begin by reading john : How is this so? What is in the Gospel of John that would cause a Jewish scholar to say this? If it is true, why do many people tell new converts to begin by reading John
Terms of product-price-place and promotion : What should be marketing mix strategies for new mba program (will launch early next year) of university in terms of product, price, place and promotion?
The property economic service life after tax : Some new production machinery has a first cost of $100,000 and a useful life of 10 years. Its estimated O&M costs are $10,000 the first year, which will increase annually by $4,000. Determine the after-tax cash flows. The property’s economic service ..
What stereotypes did jews find in medieval : What stereotypes did Jews find in medieval, Christian Europe? Who do you think was responsible for spreading antisemitism in late antiquity and the Middle Ages? (You will need to draw on your notes to class.)

Reviews

Write a Review

Financial Management Questions & Answers

  What is the length of the firms cash conversion cycle

Negus Enterprises has an inventory conversion period of 73 days, an average collection period of 43 days, and a payables deferral period of 35 days. Assume that cost of goods sold is 80% of sales. What is the length of the firm's cash conversion cycl..

  Report should demonstrate skills of critical reflection

Viktoria has found out that freight to Zurich from Romania by courier would cost on average RON 150 per carton and that the total time from her placing an order to receiving the goods in Zurich would be two weeks

  What was the annual percentage increase

In 1901, the first U.S. Open Golf Championship was held. The winner’s prize money was $210. In 2012, the winner’s check was $1,410,000. Requirement 1: What was the annual percentage increase in the winner’s check over this period? ** I've answered Re..

  Compute the eac for both machines

You are evaluating two different silicon wafer milling machines. The Techron I costs $261,000, has a three-year life, and has pretax operating costs of $70,000 per year. use straight-line depreciation to zero over the project’s life and assume a salv..

  Volatility of the exchange rate is quoted

An exchange rate is currently 0.8000. The volatility of the exchange rate is quoted as 12% and interest rates in the two countries are the same. Using the lognormal assumption, estimate the probability that the exchange rate in 3 months will be a) Le..

  Compute the total accounts receivable in each age category

Determining Bad Debt Expense Based on Aging Analysis LO6-3 [The following information applies to the questions displayed below.] Blue Skies Equipment Company uses the aging approach to estimate bad debt expense at the end of each accounting year. Com..

  Complete a project that helps you apply theoretical

complete a project that helps you apply theoretical knowledge of financial planning to practical applications. it is a

  Assume that first withdrawal will be made day you retire

You plan to deposit $2,400 per year for 4 years into a money market account with an annual return of 2%. You plan to make your first deposit one year from today. What amount will be in your account at the end of 4 years? Assume that your first withdr..

  Bonds two years ago at coupon rate

Heginbotham Corp. issued 20-year bonds two years ago at a coupon rate of 8.9 percent. The bonds make semiannual payments. If these bonds currently sell for 110 percent of par value, what is the YTM?

  Using all the monies available equally

Brandie wants to deposit $10,000 a year for 30 years. She then wants to retire for 30 years using all the monies available equally. How much can she withdraw for the 30 years assuming an interest rate at 7%? Please show work.

  What is a lower bound for the value of the futures option

Consider a four-month futures put option with a strike price of 100 when the risk-free interest rate is 10% per annum. The current futures price is 87. What is a lower bound for the value of the futures option if it is (a) European and (b) American?

  What will be your monthly payment

You plan to buy a new car. The price is $30,000 and you will make a down payment of $4,000. Your annual interest rate is 10% and you intend to pay for the car over five years. What will be your monthly payment?

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