What is the minimum internal rate of return

Assignment Help Econometrics
Reference no: EM13180918

Your company is currently considering the following possible projects (which are NOT mutually exclusive). You have a budget limitation of $400,000. What is the minimum internal rate of return that a NEW project (in addition to these) would need to earn, in order to be considered for funding?

Alternative Initial Investment Internal Rate of Return

           A       $100,000           9.8%

           B       $250,000         11.0%

           C       $400,000        11.1%

           D       $450,000        11.5%

Reference no: EM13180918

Questions Cloud

Politically conservative scientists : Suppose that politically conservative scientists tend to believe that aggression is the result of nature, while more politically liberal scientists believe it is a product of nurture. these differences in beliefs illustrate the need for scientists to..
Life is full of stress : "There is no doubt about it - life is full of stress. Think for a moment about all the things that bother you, such as exams, jobs, relationships, and finances. For most people, this list lengthens quickly.
What does it mean be satisfied with one''s job or occupation : "Imagine how hard it would be to figure out everything you needed to know in a new job with no support from the people around you. Entering an occupation involves more than the relatively short formal training a person receives. Indeed, much of the m..
Determine whether the company should install the polymer : Heidleman Industries is considering two types of materails for roofing its warehouses. EPDM is an elastomeric polymer synthesized from ethylene, propylene, and a small amount of diene monomer, compounded with carbon black processing oils and vario..
What is the minimum internal rate of return : company is currently considering the following possible projects (which are NOT mutually exclusive). You have a budget limitation of $400,000. What is the minimum internal rate of return that a NEW project (in addition to these) would need to ea..
Management practices : How do you think management practices might change in response to increasing government regulation in the banking and healthcare industries? What other recent political, social, or economic forces can you identify that might affect your job as a mana..
Removal-anti-work-disengagement and activity theory : The __________ theory of aging suggests that the elderly who are most successful while aging are those who maintain the interests and activities they had during middle age.
Pediatric community care center-specific skills-knowledge : The pediatric community care center has decided to expand its operation by opening a small pediatric satellite clinic in your community or a specific area of your city. You have been selected as administrator for the new facility.
Describes the human population : Which of the following BEST describes the human population from early times to the present?

Reviews

Write a Review

Econometrics Questions & Answers

  Estimate the parameters in this model uniquely

What is wrong with this specification? Why is least squares unable to estimate the parameters in this model uniquely? What happens when you try to estimate this model using STATA? Verify that the coefficients on education and experience variables f..

  Calculate the change in welfare compared to the free market

If the government imposed a minimum wage of w=70, what would be the resulting quantity of labor employed, the wage, and the welfare loss. Also, calculate the change in welfare compared to the free market outcome (i.e., in the absence of minimum w..

  What is the economic cost of tim attending the concert

The ticket cost Dave $600. To attend the concert Tim will have to take 3 days off from work where his daily compensation is $250. In addition Tim expects travel expenses to be $175 and the cost of a hotel for 2 days to be $275. What is the economi..

  Describe cost estimation processes

What is the profit-maximizing price and output level. Solve this algebraically for equilibrium P and Q and alos plat the MC, D and MR curves. b. What profit do you expect that the firm will make in the first year? c. Do you expect this profit leve..

  What will be the annual operating costs

The Crockett Land Winery must replace its present grape-pressing equipment. The two alternatives are the Quik-Skwish and the Stomp-Master. The annual operating costs increase by 12% each year as the machines age. If the interest rate is 9%, which ..

  Calculate the marginal revenue curve

Suppose that a firm faces a demand curve that has a constant elasticity of -2. This demand curve is given by q = 256/P^2. Suppose also that the firm has a marginal cost curve of the form MC = 0.001q. a) Graph these demand and marginal cost curves

  Identify the demand for the current year

Clean Supreme is a corporation that produces and sells  powdered laundry detergent in the U.S. The company has estimated the  following regression equation for the demand of its Brand Z detergent:

  Define the marginal benefit function

A factory benefits from discharging effluent, q, into a lake. The marginal benefit function is given by 60-2q. The pollution causes damages to two nearby communities. The marginal damages to Community A are 1q. The marginal damages to community B ..

  Kuznets hypothesized in economic development

In the name of Simon Kuznets is the concept that the relationship in GDP and inequality is nonlinear. Kuznets hypothesized three phases in economic development.

  Determining investor yield

Suppose that the home currency start to appreciate against other currencies, this should the current account balance, other things equal

  Identifying the unemployment rate

Recognize the unemployment rate as an economic indicator for whirlpool, and describe why this indicator would be a good choice.

  What price should be charged for the bundle?

At a student café, there are equal numbers of two types of customers with the following values. The café owner cannot distinguish between the two types of students because many students without early classes arrive early anyway (i.e., she cannot p..

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