What is the internal rate of return of this project

Reference no: EM13295364

Arlington Industries is considering a project with a cost today of $58,346 and benefits of $15,000 per year for the next five years.
1. Using a discount rate of 6% what is the net present value (NPV) of this project?
2. What is the internal rate of return (IRR) of this project?

Reference no: EM13295364

Questions Cloud

Population mean customer count has increase : The per-store daily customer count for a nationwide convenience store chain that operates nearly 10,000 stores has held steady at 900 for some time. To increase the customer count, the chain is considering cutting prices for coffee by half.

Write a memo to the ceo making the case : Please write a memo to the CEO making the case why this should be the first and arguably the most important question that is asked, and present a plan to train all of your loan officers on getting this information.

Critical value approach to test the hypothesis : Use the critical value approach to test the hypothesis that proportion of full-time college student in the State of NY who are employed is different from the national norm of 46%. Use the .05 level of significance.

What is the present value of the benefits from year 4 : The project will reduce annual cash payments for maintenance by $25,000 per year over the next five years. At the end of five years the machinery can be sold for $10,000. MMW has a tax rate of 30% and a discount rate of 6%.

What is the internal rate of return of this project : Arlington Industries is considering a project with a cost today of $58,346 and benefits of $15,000 per year for the next five years.

What is a source of nursing research : The research problem can be developed from many sources. What is a source of nursing research? Identify a potential research study example from that source.

Approach to setting up your worksheets-organizing data : You currently work for an automotive parts supply store. Your company is growing and is considering expansion. The company currently has three locations (North, South, and Central) in one state. Each parts supply store carries inventory in four ca..

Ultimately prepare a detailed report with recommendations : Be very specific on the variety of tools you would use and the steps you would go through to analyze the data and to ultimately prepare a detailed report with recommendations.

Previous encounters with the patient : Why is it beneficial to the provider that the Chief Complaint, Present Illness, Review of Systems, Examination, Procedure, Other Treatment, and Follow-up/Reminder areas of the OV screen display additional notes from previous encounters with the patie..

User Account

All Pages