What combined irr of two projects - lamborghini and ferrari

Assignment Help Financial Accounting
Reference no: EM132659020

Exotic Rentals has four independent projects under consideration, each with a required rate of return of 14%. The total projects budget is $800,000. A table showing the investments and projected free cash flows follow:

Project/Year

Maserati

Lamborghini

Ferrari

BMW i8 Coupe

0 (investment)

$150,380

$221,320

$286,550

$175,500

1

$40,000

$85,000

$100,000

$52,000

2

$80,000

$110,000

$125,000

$90,000

3

$60,000

$110,000

$125,000

$90,000

4

$60,000

$92,000

$125,000

$70,000

5

$95,000

$125,000

$150,000

$135,000

No additional cash flows are expected from any of the five projects after year 5. The year 5 cash flow includes rentals and auction of the exotic vehicles into the secondary car market.

Problem 1: Continuing with Exotic Rentals, what is the combined IRR of these two projects: Lamborghini and Ferrari?

[A] 35.55%

[B] 32.94%

[C] 66.47%

[D] 30.92%

[E] 33.24%

Reference no: EM132659020

Questions Cloud

What is the combined npv of maserati : Exotic Rentals has four independent projects. Continuing with Exotic Rentals, what is the combined NPV of these two projects: BMW i8 Coupe and Maserati
Differences between overall goals-strategic level : Understand the differences between overall goals, strategic level, and tactical level. Then describe the relationships between the overall goals, strategic role
Explain important human resources activities in organization : What are the 3 most important human resources activities within an organization (e.g., recruitment, evaluation, development, training, etc.) and why?
How is the case related to the commerce clause : Why do some people have a problem with Wickard v. Filburn? How is the case related to the Commerce Clause? What positive outcomes of the case can you think of?
What combined irr of two projects - lamborghini and ferrari : Exotic Rentals has four independent projects, Continuing with Exotic Rentals, what is the combined IRR of these two projects: Lamborghini and Ferrari?
Discuss any one appropriate contingency leadership theory : Discuss any one appropriate contingency leadership theory and model applicable to you and your context. Demonstrate with examples, how you would apply the theor
Sat analysis essay : Sat analysis essay - Jimmy Carter argues in his speech that the United States cannot afford to let the natural reserve turn him into roads to address economic
What role does pricing play in revenue management : Theoretically, what role does pricing play in revenue management? Pick 2 of the following to discuss by using the example:
Which position seems more interesting to you : Choose a jurisdiction (state, county, or city) in the United States. What are the qualifications to become a coroner and chief medical examiner.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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