Exclusive projects-compute the IRR for project

Assignment Help Financial Management

Reference no: EM13920049

Consider two mutually exclusive projects with the following cash flows: Project S is a 4 year project with initial (time 0) cash outflow of 3000 and time 1 through 4 cash inflows of 1500, 1200, 800 and 300 respectively. Project L is a 4 year project with initial (time 0) cash outflow of 3000 and time 1 through 4 cash inflows of 400, 900, 1300, and 1500 respectively. Assuming a 5% cost of capital, compute the IRR for project S.

Reference no: EM13920049

Questions Cloud

Relationship between risk and return : Compose a brief summary (3–5 paragraphs) on the relationship between risk and return. Identify the different types of risk and their potential effect on decision making.

Was the cash flow an operating investing or financing : Was the cash flow an operating, investing, or financing activity on First State Bank's 2013 statement of cash flows?

What is the terminal cash flow at the end of year : A firm is considering the acquisition of a new machine. The base price is $85,000 and it would cost $15,000 to install. The machine is MACRS 3 year class property and it will be sold after 3 years for $17,000. What is the terminal cash flow at the en..

Project should be chosen if the projects are independent : Consider two projects with the following cash flows: Project S is a 4 year project with initial (time 0) cash outflow of 3000 and time 1 through 4 cash inflows of 1500, 1200, 800 and 300 respectively. Project L is a 4 year project with initial (time ..

Exclusive projects-compute the IRR for project : Consider two mutually exclusive projects with the following cash flows: Project S is a 4 year project with initial (time 0) cash outflow of 3000 and time 1 through 4 cash inflows of 1500, 1200, 800 and 300 respectively. Project L is a 4 year project ..

Determine the percentage of assets that were provided : Determine the percentage of assets that were provided by retained earnings. How much cash is in the retained earnings account?

Develop an it risk assessment opinion : Develop an IT Risk Assessment opinion from both a bottom-up perspective of assessing controls, threats and vulnerabilities, and translate these findings into business risk language.

Consider two mutually exclusive projects with the cash flows : Consider two mutually exclusive projects with the following cash flows: Project S is a 4 year project with initial (time 0) cash outflow of 3000 and time 1 through 4 cash inflows of 1500, 1200, 800 and 300 respectively. Project L is a 4 year project ..

Resulting in a single free cash flow : Determine the IRR on the following projects: a. an initial outlay of $10,000 resulting in a single free cash flow of $1,844 after 11 years. b. an initial outlay of $10,000 resulting in a single free cash flow of $2,039 after 20 years. c. an initial o..

User Account

All Pages