Under what circumstances is a rate of return an irr

Assignment Help Financial Management

Reference no: EM131234378

1. Under what circumstances is an IRR a rate of return? Under what circumstances is a rate of return an IRR?

2. Give an example of a problem that has multiple IRR solutions.

3. 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?

Reference no: EM131234378

Questions Cloud

Relaxing its credit terms from the current terms : ABC is considering relaxing its credit terms from the current terms of net 30 to 3/30 net 60. The following information will help you to evaluate the proposal. Show ABC proceeds with the change. Show all relevant calculations.

How can you characterize the rate of return : A project has cash flows -$100, +$55, and +$60.50 in consecutive years. How can you characterize the "rate of return" (loosely speaking) embedded in its cash flows?

Draw the marginal cost of labour (mcl) curve : influence the equilibrium level of wages and employment under monophony? Draw a sketch diagram to illustrate your answer.

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..

User Account

All Pages