What is the irr-internal rate of return

Assignment Help Econometrics
Reference no: EM13203186

An investor deposits $30,000 annually at the end of each year for the next 15 years. At the end of the 16th year he starts to withdraw a geometric series of 20 annual payments, each 5% larger than the previous one. If the first payment is $50,000, what is the IRR (Internal Rate of Return)?

Reference no: EM13203186

Questions Cloud

Non verbal communication used to silence the bigoted man : How was non verbal communication used to silence the bigoted man? In 12 Angry Men I have watched this twice and still do not seem to have the answer.
Explain how many different ring combinations : Assuming they must choose one specific type of metal, one type of stone and one cut, how many different ring combinations do they have to choose from?
Determine the revised profit function q(x) : Determine the revised profit function Q(x).
Understanding contemporary and economic change : Can you explain the usefulness of the model in understanding contemporary and economic change?
What is the irr-internal rate of return : An investor deposits $30,000 annually at the end of each year for the next 15 years. At the end of the 16th year he starts to withdraw a geometric series of 20 annual payments, each 5% larger than the previous one. If the first payment is $50,000
Find the index of refraction of the material : snell's law total internal reflection between two materials is seen to occur if a critical angle of 60° is exceeded. if the index of refraction of the material that the light is entering is 1.98, find the index of refraction of the material in whi..
Hypothalamus is exclusively a part of the cns : A peer of yours makes a claim stating that the hypothalamus is exclusively a part of the CNS. What argument(s) would you make to substantiate that the hypothalamus is an interface between the nervous system and the endocrine system?
How many minutes will it take for the colony of bacteria : A colony of bacteria is growing exponentially, doubling in size every 140 minutes. How many minutes will it take for the colony of bacteria to triple in size?
What affect on peoples interest and enthusiasm : What is internal time and management churning (frequent turn-over of management) tends to have what affect on peoples interest and enthusiasm for proposed changes

Reviews

Write a Review

Econometrics Questions & Answers

  What is the spot exchange rate

Suppose 90-day investments in Britain have a 6% annualized return and a 1.5% quarterly (90-day) return. In the U.S., 90-day investments of similar risk have a 4% annualized return and a 1% quarterly (90-day) return. In the 90-day forward market.

  Determine the marginal utility per dollar

Assume that an individual consumes two goods, X and Y. The total utility of each good is independent of the rate of consumption of the other good. The price of X and Y are $40 and $60 respectively. Use the following table of total u..

  What percent was total real return on this investment

These bonds make annual payments and mature 8 years from now. Suppose you decide to sell your bonds today, when the required return on the bonds is 14 percent. If the inflation rate was 3.3 percent over the past year, your total real return on thi..

  What monthly withdrawal can you make

open a retirement account at the local bank that pays 8%/yr/month. For the next 20 years, you will deposit $400/month into the account, with all deposits and withdrawals occuring at month's end. On the day of the last deposit, you will retire.

  What is the excpected exchange rate in one year

The Mexican peso is trading at 10 pesos per dollar. If the expected U.S. inflation rate is 2% while the expected Mexican inflation rate is 23% over the next year, given PPP, what is the excpected exchange rate in one year

  How the real income growth will be higher

Suppose a country has a money demand function (M/P)d = kY, where k is a constant parameter. The money supply grows by 12 per year, and real income grows by 4 percent per year. a) What is the average inflation rate

  How many different combinations of 4 winning tickets

A raffle is being held at a school to raise money for the library. The organizers sell 40 tickets. They will select 4 winning tickets at random for prizes. a) How many different combinations of 4 winning tickets can there be

  Find the intercept and slope of the linear function

Suppose that some variable is growing at constant rate. a. Prove that the natural logarithm of that variable is a linea r function of time. b. Find the intercept and slope of the linear function in part a.

  Determine the total tax

Suppose the demand for a product is given by P = 40 - 4Q. Also, the supply is given by P = 10 + Q. If a $10 per-unit excise tax is lecied on the buyers of a good, then after the tax buyers will pay how much for each unit of the good.

  The theoretical background and hypothesis

The theoretical background and hypothesis and the methodology section and What is the theoretical basis for answering the research question? That is, what are the arguments, given the existing theories, about how you key independent variable "X" i..

  Compute the annual income you will receive during retirement

Assume that savings are invested at the end of each calendar year. Assume that during your working life you earn a return of 8% per year, and that when you retire at age 65 you move your assets into more conservative investments and earn a return ..

  Identify the preferred project according to the criterion

An individual is considering two investment projects. Project A will return a zero profit if conditions are poor, a profit of $4 if conditions are good, and a profit of $8 if conditions are excellent. Project B will return a profit of $2 if condi..

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