Irr calculation

Assignment Help Business Economics
Reference no: EM131197609

(IRR calculation) Determine the IRR on the following projects: a. An initial outlay of $10,000 resulting in a free cash flow of $1,993 at the end of each year for the next 10 years b. An initial outlay of $10,000 resulting in a free cash flow of $2,054 at the end of each year for the next 20 years c. An initial outlay of $10,000 resulting in a free cash flow of $1,193 at the end of each year for the next 12 years d. An initial outlay of $10,000 resulting in a free cash flow of $2,843 at the end of each year for the next 5 years

Reference no: EM131197609

Questions Cloud

Capital budgeting decision methods : In a book named "Cases in Financial Management." Chicao Valve Company (Revised) case 11 Topic - Capital Budgeting Decision Methods, question What is the project's NPV? Explain the economic rationale behind the NPV. Could the NPV of this particular pr..
Describe a potential capital expenditure project : Describe a potential capital expenditure project from the industry in which you now work or an industry in which you are interested. What is the project? Describe and provide an approximate value of the initial cash flow. Describe and provide an appr..
Compute the fee that the manager will earn in dollars : A hedge fund currently has assets of $500 million. The annual fee structure of this fund consists of a fixed fee of 1% of portfolio assets plus a 20% incentive fee. Compute the fee that the manager will earn, in dollars, if the return on the fund in ..
Determine the expected net present value of the project : An investor estimates that investing €5 million in a particular venture capital project can return $40 million at the end of five years if it succeeds; however, she realizes that the project may fail at any time between now and the end of the fifth y..
Irr calculation : Determine the IRR on the following projects: An initial outlay of $10,000 resulting in a free cash flow of $1,993 at the end of each year for the next 10 years. An initial outlay of $10,000 resulting in a free cash flow of $2,054 at the end of each y..
Portfolio weight becomes negative after the short selling : Suppose you have $2,000 in your E*Trade account. You borrow $1,000 and invest all $3,000 in the Intel stock. Determine your portfolio weight Wintel and Wcash. Suppose you have $2,000 in your E*Trade account. You sell short some Intel shares and recei..
What is its present value and its future value : PRESENT AND FUTURE VALUES OF A CASH FLOW STREAM An investment will pay $150 at the end of each of the next 3 years, $250 at the end of Year 4, $300 at the end of Year 5, and $500 at the end of Year 6. If other investments of equal risk earn 11% annua..
Inventory on its balance sheet : Tater and pepper Corp reported sales for 2015 of 24 million. Tater and pepper listed $5.7 million of inventory on its balance sheet. How many days did tater and pepper inventory stay on the premises? How many time per year did tater and pepper invent..
Illegal conduct trading refers usually selling-buying stocks : As you mentioned "Illegal conduct trading refers usually selling and buying stocks, in breach of relationship trust and confidence or fiduciary duty, non public information about the security include tipping." Any real examples individuals abuse the ..

Reviews

Write a Review

Business Economics Questions & Answers

  A firms total cost and marginal cost functions

A firm’s total cost and marginal cost functions are TC = 10 Q2 + 2 Q – 2 ; MC = 20 Q + 2. Asuming that the market price is 42 and that the marginal revenue (MR) is also 42 (it is constant at all output levels), how much output will this firm sell (pr..

  Australian medical association

Statistical analysis indicates that a=0.8 and b=0.3. The firm's owner claims the plant has increasing returns to scale.

  Illustrate what are short-run and long-run effects output

illustrate what are short-run and long-run effects on aggregate price level and aggregate output. There is an increase in taxes on households. There is an increase in quantity of money. There is an increase in government purchases.

  The marginal physical product of the last unit

Please show how to setup and solve. Assume a firm produces 500 units of a good by using two inputs, capital and labor, whose per unit prices are $10 and $4. Assume also that the marginal physical product of the last unit of capital is 30 and the marg..

  Evaluate the costs and benefits of outsourcing employees

In an advertisement for a professionsl employment organization it was stated: "Outsourcing can be a cost-effective alternative to the expense and administrative burden of a traditional employer-employee relationship." Evaluate the costs and benefits ..

  Booking vacations to europe for the coming year

European vacations are getting cheaper than they have been in years. With the dollar gaining 14.6 percent on the euro and 12.1 percent on the British pound over the past 12 months, large numbers of U.S. tourists are already booking vacations to Europ..

  Booming and everyone is making money with stock portfolios

The stock market is booming and everyone is making money with their stock portfolios. At the same time, all business taxes have been increased by 20% as the government tries to reduce their deficit. Using the required underlying graphs, illustrate th..

  What are the long-run effects of the decrease in the MPC

Consider the AD/AS model of the economy built from the IS/LM, and assume that the SRAS is upward sloping. The economy is currently operating at the full employment level of output. What are the short-run effects of the decrease in the MPC?  What are ..

  What is the clinics profit-maximizing price

A clinic has incremental costs per case of $10 and overhead costs of $100,000. It faces a price elasticity of demand of -2. What is the clinic’s profit-maximizing price? (Round to the nearest whole dollar)

  Role is to keep banks secure and to prevent financial panic

The Federal Reserve was created in 1913 to oversee banking activities in the United States. It is, in effect, a banker's bank. Its role is to keep banks secure and to prevent financial panic. Does the Federal Reserve have too much power or do they ne..

  What is the real value of output

What is the real value of output (Q)? Enter your response as a whole number. _______billion. Now assume that the Fed increases the money supply by 10% and the velocity remains unchanged. If the price level remains constant, by how much will real outp..

  Explain why a system of marketable pollution permits leads

Explain why a system of marketable pollution permits leads to less costly pollution abatement and a higher concentration of polluted areas than a command-and-control system.

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