I need the answer as soon as possible Q4: Find the internal rate of return for the investment, the cash flow shown belowusing the (I.I.R) method, if the return on investment rate is 10%, an immediate amountof (C= 9000 ) $ has been invested at beginning of project , and the salvage value is(C =3000) $ .Year12456.Revenue $350040005000600070008000Cost $200025003500400045004500

Calculation of cash flows Year Revenue Cost Cash flow A B C=A-B 0 0 9000 -9000 1 3500…

Answered: 04: Find the internal rate of return…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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For the cash flows given below, find the ERR and evaluate the project when the external reinvestment rate is ε = 10% and MARR = 8%. EOY 0 1 2 234 5 Cash Flow -$10,000 -$2,000 $2,500 $4,000 $4,000 $4,000
Consider the cash flows for the following investment projects. Assume that MARR=12%/year. A B 0 -PhP 1,000 -PhP 1,000 - PhP2,000 1 900 600 900 2 500 500 900 3 100 500 900 4 50 100 900 Which project should be selected using incremental analysis (AW method)? ANSWERS: AWA = PhP Blank 1 AWB = PhP Blank 2 AWc = PhP Blank 3 %3D AW (B-A) = PhP BIlank 4 AW (C-B) = PhP Blank 5 Investment Blank 6 (use capital letter) is better.
The following are the cash flows of two projects: Year 0 1 2 3 4 Project A $ (220) 100 100 100 100 Project B $ (220) 120 120 120 What are the internal rates of return on projects A and B? Note: Enter your answers as a percent rounded to 2 decimal places. Project A B IRR % %
Consider the cash flows for the following investment projects. Assume that MARR=12%/year. A B C 0 - PhP 1,000 – PhP 1,000 - PhP2,000 1 900 600 900 2 500 500 900 100 500 900 4 50 100 900 Which project should be selected using incremental analysis (AW method)? ANSWERS: AWA = PhP Blank 1 AWB = PhP Blank 2 AWC = PhP Blank 3 AW (B-A) = PhP Blank 4 AW (C-B) = PhP Blank 5 Investment Blank 6 (use capital letter) is better.
Q4. Your project has following Cashflows: Time Cashflow 0 B).19.14% C).21.08% D).21.68% 1 -25,000.00 5,000.00 35,000.00 The reinvestment rate is 10% and refinancing rate is 15%. What is MIRR?.. A).19.73% 2 10,000.00 3 - 5,000.00 4
ed Your company has a project available with the following cash flows: Year Cash Flow 0 -$80,900 12345 21,600 25,200 31,000 26,100 20,000 If the required return is 15 percent, should the project be accepted based on the IRR?
The table bellow shows the cash flow for an engineering project, if the reinvestment rate of return ɛ is 6% per year, the external rate of rate (EER) is : EOY Cash flow $ |-13000 4 -4000 5 to 10 6000
Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) -$ 15,456 5,225 8,223 13,013 8,705 0 1 234 -$ 276,363 26,400 51,000 57,000 402,000 Whichever project you choose, if any, you require a 6 percent return on your investment. a. What is the payback period for Project A? Payback period b. What is the payback period for Project B? Payback period c. What is the discounted payback period for Project A? Discounted payback period
Q1: For the machines indicated below. Consider i= 10% per year First cost Annual cost Salvage value Life duration Machine A 20,000 $ 5,000 $ 7,500 $ 3 Machine B 25,000 4,000 6,000 4 A- Draw cash flow diagram for each machine for one cycle of each project B- Draw cash flow diagram for each project considering the LCM life cycle (Hint: different project duration, need to have the LCM life cycle) C- Compare the machines to select best alternative one based on Present worth analysis method D- Repeat part B considering Future worth analysis
A firm is evaluating a project with the following cash flows. At a required return of 11 percent, what is the project's NPV? What if the required return is 24 percent? Input area: Required Return Required Return Year 0 Year 1 Year 2 Year 3 Output area: es es es es NPV at 11% NPV at 24% Մ $ $ 11% 24% (Use cells A6 to B11 from the given information to complete this question. You must use the built Excel function to answer this question.) (41,000) 20,000 23,000 14,000
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