Explain real rate of return

Q: Can I calculate the Rate of Return using the NPV/initial investment? Why or why not?

A: When an investment is made in a certain project, its future outcomes are measured based on the money…

Q: Define actuarial rate of return

A: Definition: Actuarial rate of return is the expected value of losses of an insurance company that…

Q: Required: a. Determine the discounted rate of return.

A: Formula: Discount rate= Lower Rate +Lower NPV×Higher Rate-Lower RateLower NPV-Higher NPV

Q: payback period?

A: Payback period is when the initial cash outflow is recovered via cash inflows

Q: Please solve using Rate of Return method.

A: Rate of return is the rate at which return is expected from any investment. This defines the gain or…

Q: Why are the net present value and the internal rate of return models superior to the payback period…

A: The net present value and internal rate of return techniques are superior to the payback method…

Q: Define return rate

A: The return rate can be calculated on various assets and can be used to compare various investments.…

Q: Explain payback period

A: Answer: Payback period is nothing but the time a company gets back the money that is originally…

Q: Define time value of money (TVM) analysis

A: Answer: Money has a certain time value and the idea of present value is based on time. For example,…

Q: Simple Rate of Return

A: Simple rate of return = Net operating income * 100/ Cost of investment

Q: Explain an example of payback how to calculate.

A: A payback period is the amount of time needed to earn back the cost of an investment. The length of…

Q: Present and Explain the theories of the Yield Curve?

A: The yield curve is a curve that shows the relationship between the interest rates and the different…

Q: /hat is the internal rate of return of the proposed project?

A: IRR(INTERNA RATE OF RETURN), is the rate that equates the present value of cash flows and the future…

Q: ected rate of return concept differ from that of the rea

A: There are many method of valuation of stock based on expected rate and realized return and dividends…

Q: Expected rate of return.

A: Risk-free rate:   This can be described as the rate of return of the asset which has zero risks.…

Q: find The internal rate of return (IRR) for this case in exceland equation.

A: Internal rate of return(IRR) is the rate at which the the initial cost of project is equal to…

Q: r expected return on this investment?

A: Expected return on investment refers to the rate of return that an investor is expecting on an…

Q: Which alternative offers you the highest effective rate of return?

A: Investment appraisal is the method of evaluating and selecting investments from various investment…

Q: what is meant by the required rate of return

A: The return which is expected to be earned by investing in a security is known as Required Rate of…

Q: PROVIDE - PRESENT VALUE, FUTURE VALUE, AND internal rate of return (IRR)

A: Present and Future Value: The current value of a cash flow that is expected to occur at some time in…

Q: Define payback period.

A: Capital investment analysis: Capital investment analysis is the process of decision making, planning…

Q: Define Expected rate of return

A: Introduction: Usually return is a kind of profit that comes from your investment. Example, an amount…

Q: Determine the ending value of the investment. Rate of return = 10%

A: We will assume that the rate of return mentioned in the question is for the end of the period. it…

Q: Consider IRR on Incremental Investment when Initial IRR Flows are equal?

A: Answer: IRR is a measure in capital budgeting used to measure the value of the predicted…

Q: Describe the Internal-Rate-of-Return Criterion?

A: Internal rate of return (IRR) is defined as the rate of discount at which the NPV of human capital…

Q: How can we calculate the Rate-of-Return with Excel?

A: The question is based on the concept of calculation of rate of return (ROR), (ROR) is percentage…

Q: Calculate the following: Payback Period NPV IRR

A: Information Provided: Initial Investment = $225,000 Year 1 CF = $95,000 Year 2 CF = $80,000 Year 3…

Q: e Internal rate of return

A: The following problem can be solved using XIRR function in excel.

Q: calculate internal rate of return acounting rate of return pay back period

A: Data given: Cost of machine = RM 3,500,000 Useful life of machine = 5 years Residual value = RM…

Q: Explain four aspects of rate-of-return analysis?

A: The return of return is the return on investment made when the time value cashflows turns to net…

Q: What formula to use to find Payback Period and NPV? (in Excel)

A: NPV or Net Present Value is the present value of all net cash cashflow on a provided discount rate.…

Q: calculate the internal rate of return

A: Information Provided: Discount rate = 10% Realisable Value = 20%

Q: Explain expected rate of return

A: Return: Return is defined as the money attained or lost on an investment through certain time…

Q: What is the formula for the following: Payback period. Net Present Value Internal Rate of return…

A: Accounting:   Accounting is the art of recording, classifying and summarizing in a significant…

Q: What should be done to apply rate-of-return analysis correctly?

A: Rate of return: It can be defined as the rate of interest that has been earned by the company on the…

Q: Explain normal rate of return.

A: Rate of return: Rate of return is the return on investment. it might be a loss or profit on an…

Q: Calculate the average rate of return, and conclude your results with your comments about the ARR for…

A: Calculation of Accounting Rate of Return (ARR)  Year                             Net Cash Flow 1st…

Q: return on investment

A: First option is wrong because return on investment will decrease if invested capital increases.…

Q: What ROI will equate the PV of Inflows and the PV of outflows? a. Internal rate of return (IRR) b.…

A: Option b is incorrect because cost of capital means the cost that is incurred by the organization on…

Q: Explain realized rate of return

A: The return generated by an investment is any asset class is the normalized rate of return. When the…

Q: Define realized rate of return

A: Return can be defined as the profit or interest earned by the investor on the investment, which…

Q: The size of the investment required in Y is $ The rate of return on Y is | %.

A: Rate of Return: It is the return over a period of time made on the investment.   Information…

Q: What is Modified Internal Rate of Return (MIRR) method?

A: Internal rate of return (IRR): The internal rate of return (IRR) is a measure utilized in capital…

Q: The minimum acceptable rate of return for an investment decision is called the;

A: A project to become acceptable shall be as such the costs shall be recovered completely.

Q: Find the internal rate of return

A: Internal Rate of Return is the rate at which Present value of cash inflow is equal to present value…

Q: Another term for return is ..................

A: Return means money which is earned or lost in the process of investment. Return  can be in the form…