What is the internal rate of return for this proposal

Assignment Help Business Economics
Reference no: EM131094389

A proposal for investing 8.5 million has been made. The investment would return end of period payment of 1.15 million for 15 periods at which time the investment could be sold for 2.6 million.

a. What is the internal rate of return for this proposal?

b. If the investor has an MARR of 11.5%, is this proposal acceptable? (Yes or No)

Reference no: EM131094389

Questions Cloud

Explain what deadweight loss is and what causes it : Explain what consumer surplus and producer surplus is and how it can be found. Explain what a deadweight loss is and what causes it. Explain the difference between private goods and public goods. Explain what a negative externality is and how it can ..
Measure changes in wage inequality : Almost all empirical studies that measure changes in wage inequality in the U.S. over time use only monetary wages as the measure of a worker’s compensation. The studies typically do not include measures of the value of fringe benefits (health insura..
Governance and liberties for indigenous policy : The federal government controls which groups are recognized as Indians and which tribes receive federal benefits because of this recognition. However this poses a problem with American Indians not having sovereignty in their own government or being o..
Types of students rural areas and urban areas : Suppose two types of students, those from rural areas and those from urban areas, apply to college. There are only two types of performances, excellent and poor. It has been found that a higher percentage of urban students perform poorly than rural s..
What is the internal rate of return for this proposal : A proposal for investing 8.5 million has been made. The investment would return end of period payment of 1.15 million for 15 periods at which time the investment could be sold for 2.6 million. What is the internal rate of return for this proposal?
Calculate the firms producer surplus : Suppose the market price in a perfectly competitive market is $10. Suppose the marginal cost of the firm is given by: MC = 2Q + 2. Graph the profit maximizing decision facing the firm, showing the corresponding profit maximizing level of output, on a..
Plans on increasing her investments : Elaine is going to invest $5,000 this year, and plans on increasing her investments by 7% each year. If she invests for 20 consecutive years and earns 7% per year, the amount she deposits on the 20th year is closest to …
When do consumers pay the most of sales tax : When do consumers pay the most of a sales tax? When do producers pay most of the tax? How should sunk cost be taken into account in decision making? (include example if possible). Given that sales taxes cause deadweight loss, what should be the elast..
In order for the account to be completely emptied : In August 2000, an account that pays 6% interest was opened with a deposit of $12,000. There was and will be no withdrawals or additional deposits until August 2010, when the first of four equal annual withdrawals are made. In order for the account t..

Reviews

Write a Review

Business Economics Questions & Answers

  Rashid''s budget constraint

Explain why monopolistically competitive firms frequently prefer nonprice competition to price competition.

  Contribution influence public policy

If you choose to contribute to a candidate’s campaign, to what extent is the candidate obligated to you as a contributor? Should your contribution influence public policy?

  Is the market necessarily an antitrust market

Demand in a market is found to be inelastic. Is the market necessarily an antitrust market? Is this necessarily true? If p A + t > pB , is A an antitrust market?

  Solve for the marginal products of capital and labor

Where A,a, and b are positive constants. solve for the marginal products of capital and labor. for what values of a and b will production function exhibit diminishing marginal returns to capital and labor?

  Supply curve shifts outward or inward with an unchanged

When the_____ supply curve shifts outward or inward with an unchanged _____ curve, equilibrium price and quantity increase or? decrease, respectively. When the___ curve shifts outward or inward given an unchanged____ curve, equilibrium price moves in..

  When the general price level rises and firms

When the general price level rises and firms decide not to change their prices in the short run, this can be attributed to:

  Explain the economics and ethics involved

How does gated content relate to intellectual property rights in a digital world? Explain the economics and ethics involved.

  Illustrate what other additional information do you need

Illustrate what other additional information do you need, and how would you proceed if you had that information.

  Investment spending change as the events occur

How will planned investment spending change as the following events occur?

  What are the cons of the strategy

The interest rate affects the investment patterns in the economy. A friend of yours suggests a get-rich-quick scheme: Borrow from the nation with the lower nominal interest rate, invest in the nation with the higher nominal interest rate, and profit ..

  Elucidate the effect on prices and output

Elucidate with an aid of a diagram , the effect on prices and output if households decide to spend a large share of their income.

  Dealership changed her sales managers compensation plan

Last year the owner of an auto dealership changed her sales manager’s compensation plan. Previously, the manager received a fixed compensation. After the change, the manger’s compensation was based on a percentage of sales. Compared to last year, sal..

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