Conceptual differences between APR and IRR

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Reference no: EM132005923

1. Airfoil, Inc. has equipment with a book value of $500 that could be sold today at a 20% discount. Its inventory is valued at $950 and could be sold to a competitor for that amount. The firm has $500 in cash and customers owe it $150. What is the accounting value of its liquid assets?

2. The calculations of APR and IRR are the same but these two values are conceptually very different. Please explain these conceptual differences between APR and IRR.

3. Consider a $2,500 loan, to be repaid in twelve quarterly payments of $243.72 each. Calculate the Annual Percentage Rate of this loan.

Reference no: EM132005923

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