6.7 Determine the rate of return per year for the cash flows shown below. Use (a) tabulated factors, and (b) a spreadsheet. Year 1 3 4. Cash Flow, $ -80,000 9000 70,000 30,000
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- Start with the partial model in the file Ch07 P25 Build a Model.xlsx on the textbook’s Web site. Selected data for the Derby Corporation are shown here. Use the data to answer the following questions. Calculate the estimated horizon value (i.e., the value of operations at the end of the forecast period immediately after the Year-4 free cash flow). Assume growth becomes constant after Year 3. Calculate the present value of the horizon value, the present value of the free cash flows, and the estimated Year-0 value of operations. Calculate the estimated Year-0 price per share of common equity.Determine the rate of return of the example cash flow shown in the table below. Year 0 1 2 3 4 Cash flow -3,000 1,000 900 900 900please determine the rate of return of the cash flows shown in the table below. Year 0 1 2 3 4 Cash flow -3,000 1,000 900 900 900
- Consider a cash flow and interest profile as shown: The worth at the end of Year 3 of these cash flows is: a. $5,000.00 b. $5,504.72 c. $5,994.56 d. $5,440.00Determine the rate of return per year for the cash flows shown below. Year 0 1 2 3 Cash Flow, $ −125,000 −7,500 84,000 78,000What is the IRR of the following set of cash flows? Year Cash Flow 0 –$9,531 1 4,200 2 5,500 3 4,400
- The annual worth for years 1 through 8 of the cash flows shown is $30,000. What is the amount of the cash flow labeled x in year 3, if i = 10% per year? Solve using (a) tabulated factors, and (b) a spreadsheet.Consider the following cash flows: Year Cash Flow 0 −$ 33,500 1 13,500 2 18,200 3 10,900 What is the IRR of the cash flows?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.)
- Consider the following cash flows: Year Cash flow 0 -25000 1 7000 2 6000 3 5000 4 3000 5 3000 6 1500 7 1500 8 500 Compute the rate of return represented by the cash flows.Compute the IRR from the following set of cash flows: Year Cash Flow 0 (1000) 1 400 2 400 3 400 4 600 Question 10 options: 15.2 21.9 26.4 33.9What is the NPV of the following cash flows if the required rate of return is 0.09? Year 0 1 2 3 4 CF -4,529 2,431 572 1,804 3,132 Enter the answer with 2 decimals (e.g. 1000.23).
