23. Graph the PW(i) as a function of i for each cash flow shown. The range of in- terest-rate values for which these graphs should be drawn extends from 0% to 50%. From the graphs determine the internal rates of return for each cash flow. End of Year 2 4 -$ 3,000 10,000 2,000 5,000 500 $ 7,500 50,000 $ 0 24,024 20,000 -$ 4,620 93,500 77,500 20,000 10,725 19,500 1,800 6,000 1,000 25,150 2,160 1,800 2,000 864 6,000 4,000 6,000 3,600 3,000

23. Graph the PW(i) as a function of i for each cash flow shown. The range of in- terest-rate values for which these graphs should be drawn extends from 0% to 50%. From the graphs determine the internal rates of return for each cash flow. End of Year 2 4 -$ 3,000 10,000 2,000 5,000 500 $ 7,500 50,000 $ 0 24,024 20,000 -$ 4,620 93,500 77,500 20,000 10,725 19,500 1,800 6,000 1,000 25,150 2,160 1,800 2,000 864 6,000 4,000 6,000 3,600 3,000

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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Similar questions

What is the NPV of the following cash flows if the required rate of return is 0.09? Year 0 1 2 3 4 CF -3,935 687 1,937 3,189 968 Enter the answer with 2 decimals (e.g. 1000.23).
A manufacturer projects the cash flows shown below. Determine the rate of return if the cash flows occur as projected. Year Cash Flow, $ 0 -733,000 1 -467,000 2 215,000 3 279,000 4 – 8 309,000
What is the NPV of the following cash flows if the required rate of return is 0.09? Year 0 1 2 3 4 CF -6,816 3,577 3,505 2,732 3,757
What is the internal rate of return for the following set of cash flows?Year Cash Flow0 -$60,0001 20,0002 20,0003 40,0004 40,000 Do not answer in excel format. Please give formula/handwritten or TI-84 calculator method
For the cash flows shown, determine: (a) the number of possible i* values (b) the i* value displayed by the IRR function (c) the external rate of return using the MIRR method if ii = 18% per year and ib = 10% per year. Year 0 1 2 3 4 Revenues, $ 0 25,000 19,000 4000 18,000 Costs, $ −6000 −30,000 −7000 −6000 −12,000
Consider the following cash flows: Year Cash Flow 0 –$ 34,000 1 13,600 2 18,100 3 11,000 What is the IRR of the cash flows? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
From the following data, calculate internal rate of return (IRR) Year Cash Flow(Rs) 0 (3,84,000) 1 1,50,000 2 1,25,000 3 1,00,000 4 75,000 5 55,000
Calculate the internal rate of return for a $300.0m cash outflow at the end of year 0 and a $716.0m cash inflow at the end of year 5. 16% 20% 18.5% 19%
An arithmetic cash flow gradient series equals $600 in year 1, $800 in year 2, and amounts increasing by $200 per year through year 5. At i = 6% per year, determine the factor from the compound interest factor table that is used to calculate the equivalent annual worth of the revenue through year 5. Multiple choice question. A. 4.212 B. 5.637 C. 1.884 D. 7.934
mekmek Corporation uses the Baumol Cash Model to determine its optimal cash balance. For the coming year, the expected cash disbursement total to P432,000. The interest rate on marketable securities is P8 per transaction. Using 5% carrying cost rate, what is the optimal cash balance of the company? A. 1,175.76 B. 5,878.78 C. 11,757.55 D. 142,000
Consider the following cash flows: Year Cash Flow 0 –$7,400 1 2,100 2 4,700 3 1,900 4 1,600 What is the payback period for the cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Given the following incomplete sensitivity analysis, what is the net present value of annual cash flows of $300,000? Estimated Annual Net Cash Flow $300,000 $400,000 $500,000 Present value of annual net cash flows (× 4.487) $ ?? $1,794,800 $2,243,500 Present value of residual value 24,000 24,000 24,000 Total present value $ ?? $1,818,800 $2,267,500 Amount to be invested (1,500,000) (1,500,000) (1,500,000) Net present value $ ?? $ 318,800 $ 767,500 a.$(129,900) b.$1,346,100 c.$1,322,100 d.$129,900

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