Should you take given project

Assignment Help Financial Management
Reference no: EM131234375

1. Your project has cash flows of -$1,000 in year 0, +$3,550 in year 1, -$4,185 in year 2, and -$1,638 in year 3. What is its IRR?

2. A project has cash flows of +$400, -$300, and -$300 in consecutive years. The prevailing interest rate is 5%. Should you take this project?

Reference no: EM131234375

Questions Cloud

Describe the concepts of groupthink and focalism : Describe the concepts of groupthink and focalism and the similarities and differences that exist between the two. Think about an organization for which you currently work or one that you previously worked for
Under what circumstances is a rate of return an irr : Under what circumstances is an IRR a rate of return? Under what circumstances is a rate of return an IRR? - Give an example of a problem that has multiple IRR solutions.
Calculate the project present value : A project pays the investor $5 at t1 and t2. From t3 on, the cash flow will increase by 5%. For example, the cash flow at t3 is $5.25, and the cash flow at t4 is $5.5125. The rate of return is 15%. Calculate the project's present value.
What are responsibilities of the corporate board of director : What are the responsibilities of the corporate Board of Directors and the corporate management group running the corporation? Based upon the state law, the corporate charter and public, why is this so?
Should you take given project : A project has cash flows of +$400, -$300, and -$300 in consecutive years. The prevailing interest rate is 5%. Should you take this project?
What is the bond current yield : a. What is the bond's current yield? Round your answer to two decimal places. Do not round intermediate calculations. b. What is the bond's nominal annual yield to maturity (YTM)? Round your answer to two decimal places. Do not round intermediate c..
What is a cpa cma and a cfa : Review and reflect on what you have learned over the past eight weeks. Which material is more applicable to your future or current career? What is a CPA, CMA, and a CFA
Determining the required return on the stock : South Side Corporation is expected to pay the following dividends over the next four years: $13, $11, $6, and $2. Afterward, the company pledges to maintain a constant 6 percent growth rate in dividends forever. If the required return on the stock..
What discount rate scenario should you accept this project : If a project has a cash inflow of $1,000 followed by cash outflows of $600 in two consecutive years, then under what discount rate scenario should you accept this project?

Reviews

Write a Review

Financial Management Questions & Answers

  Concept of cost of capital mace manufacturing

Concept of cost of capital Mace Manufacturing is in the process of analyzing its investment decision-making procedures. Two projects evaluated by the firm recently involved building new facilities in different regions, North and South. an analyst emu..

  List three types of budgets that could be used in tourism

SITXFIN402 Manage Finances within a Budget Written Assessment. List three types of budgets that could be used in the Tourism, Hospitality &Events industry.  Provide a brief explanation on what each budget is used for

  What are the earnings per share for your firm

You currently work for a firm that has investment capital per share equal to $100. This firm currently enjoys an annual return on capital of 12 percent. Given the current payout policy, what are the earnings per share for your firm?  What discount ra..

  Best estimate of teh remaining life left for eades corp

Eades has 9% annual coupon bonds that are callable and have 18years left until maturity. The bonds have a par value of $1,000, and their current market price is $1,220.35. However, Eades may call the bonds in eight years at a call price of $1,060. Wh..

  Conveyor belt systems-pretax annual operating costs

Lang Industrial Systems Company (LISC) is trying to decide between two different conveyor belt systems. System A costs $204,000, has a four-year life, and requires $66,000 in pretax annual operating costs. Calculate the NPV for both conveyor belt sys..

  About the incremental free cash flow

Two years ago the Krusty Krab Restaurant purchased a grill for $50,000. The owner, Eugene Krabs, has learned that a new grill is available that will cook Krabby Patties twice as fast as the existing grill. The incremental free cash flow that the Krus..

  Borrow whatever is outstanding on your current mortgage

You have decided to refinance your mortgage. You plan to borrow whatever is outstanding on your current mortgage. The current monthly payment is $2,356 and you have made every payment on time. The original term of the mortgage was 30 years, and the m..

  Appropriate discount rate-what is the present value

An investment will pay you $33,000 in 12 years. If the appropriate discount rate is 6 percent compounded daily, what is the present value?

  Used to improve the firms cash conversion cycle

Which of the following methods can be used to improve the firm's cash conversion cycle? a) decrease the firm's inventory conversion cycle. b) increase the firm's receivables collection period. c) decrease the firm's payables deferral period.

  Will brence be better off to issue floating-rate debt

Carter Enterprises can issue floating-rate debt at LIBOR or fixed-rate debt at 9.9 percent. Brence Manufacturing can issue floating-rate debt at LIBOR + 1.5 percent or fixed-rate debt at 10.5 percent. What are the net payments of Carter and Brence if..

  Find the market risk premium

Mulherin's stock has a beta of 1.23, its required return is 11.75%, and the risk-free rate is 4.30%. What is the required rate of return on the market?

  Compute the sample mean and standard deviation

Express the simple returns in percentages. Compute the sample mean, standard deviation, skewness, excess kurtosis, minimum, and maximum of the percentage simple returns.

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