What is the internal rate of return of this proposal

Assignment Help Finance Basics

Reference no: EM133633257

Question: A company is considering a new line which will require an initial investment of $355,000. Free cash flows expected as a result of this project are shown below. At the end of the final year shown, the company plans to sell off assets no longer needed by the project, netting $20,000 after tax. The company has a 15% cost of capital (i.e., the required rate of return is 15%). What is the internal rate of return of this proposal?

Year 0	Year 1	Year 2	Year 3	Year 4	Year 5
Initial Investment	80,000	85,000	90,000	95,000	100,000

Enter your answer as a percentage rounded to two decimal places, but without the percent symbol. For example, if your answer is 90.1234%, enter 90.12 If you have a negative result, enter a negative number.

Reference no: EM133633257

Questions Cloud

What would you suspect : Before giving the premixed IV anti-infective ordered for your patient, on checking the IV site you note swelling, discomfort, decreased. What would you suspect?

Patient rights and role of paternalism : Discuss at least one legal conflict associated with this case. how would you define this patient's rights and the role of paternalism?

How would you use native advertising in promoting podcast : Describe some grassroots initiative that you would create for your podcast. How would you use native advertising in promoting your podcast?

What type of hypertensive crisis is present in the patient : A 45-year-old man is brought to the emergency department with mental Obtundation. What type of hypertensive crisis is present in this patient?

What is the internal rate of return of this proposal : The company has a 15% cost of capital (i.e., the required rate of return is 15%). What is the internal rate of return of this proposal

What is the bonds yield to maturity : makes interest payments on a semiannual basis (4.5 percent semiannually). What is the bond's yield to maturity

Nurse is caring for patient in clinical situation : The nurse wants to develop and refine a research question using the steps of the research process. How can the nurse accomplish this objective?

How you help your patients establish sense of physical needs : As a nurse, how can you help your patients establish a sense of physical and safety needs to help set them on a path towards healing?

Which parameters should be monitored to determine efficacy : With regards to the management of hypertension, which parameters should be monitored to determine the efficacy of angiotensin converting enzymes?

User Account

All Pages