User Account

All Pages

Decision rule to evaluate project

Assignment Help Finance Basics
Reference no: EM132141199

Need help figuring out how to solve for IRR. I've looked all over and seeing different ways to do it, however I'm not sure how to get the IRR %. I know that NPV is 0, but not sure how to calculate the rest.

Suppose your firm is considering investing in a project with the cash flows shown as follows, that the required rate of return on projects of this risk class is 8 percent, and that the maximum allowable payback and discounted payback statistic for the project are three and three and a half years, respectively.

Time 0 1 2 3 4 5

Cash flow -100,000 30,000 45,000 55,000 30,000 10,000

Use the IRR decision rule to evaluate this project; should it be accepted or rejected and why?

Reference no: EM132141199

Questions Cloud

Write the code for sizeis for the class : Suppose we decide to add a new operation to our Stack ADT called sizeIs, which returns avalue of primitive type int equal to the number of items on stack.
How large can f be for the entire list to be sorted : How large can f(n) be for the entire list to be sorted in O(n) time? Please help with these three questions. do not post unrelated answer.
Indicate the sequence of tracks visited and the total head : Suppose that the head of a disk with 256 tracks, numbered 0 to 255, is currently serving a request at track 58.
What is the yield to maturity : What is the yield to maturity? Then assuming that periodic cash flows are reinvested at 10% and the market interest rates remain the same for the entire 4 years
Decision rule to evaluate project : Use the IRR decision rule to evaluate this project; should it be accepted or rejected and why?
Facilitate growth of another component of the business : What factors would influence the decision to sell a component of the business to raise capital to facilitate growth of another component of the business?
Methods of risk management : What is the difference between risk and uncertainty and what are the methods of risk management?
Define and explain the pros and cons of npv : What circumstance would project evaluation methods be used and Define and explain the pros and cons of NPV, IRR, and Payback methods?
Describe the role of notification or proxy in snmp : Discuss the enhancement carried by RMON2 compared to RMON1 in terms of monitoring capability.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd