What is the discount rate at which the following cash flows have a NPV of $0?...
What is the discount rate at which the following cash flows have
a NPV of $0? Answer in %, rounding to 2 decimals.
Year 0 cash flow = -106,000
Year 1 cash flow = 34,000
Year 2 cash flow = 37,000
Year 3 cash flow = 29,000
Year 4 cash flow = 43,000
Year 5 cash flow = 38,000
Year 6 cash flow = 33,000
Homework Answers
NPV=Present value of inflows-Present value of outflows
At irr,present value of inflows=present value of outflows.
Hence at irr;NPV=0
Let irr be x%
106000=34000/1.0x+37000/1.0x^2+29000/1.0x^3+43000/1.0x^4+38000/1.0x^5+33000/1.0x^6
Hence x=discount rate=24.37%(Approx).
Add Answer to:
What is the discount rate at which the following cash flows have
a NPV of $0?...
What is the discount rate at which the following cash flows have a NPV of $0?...
What is the discount rate at which the following cash flows have a NPV of $0? Answer in %, rounding to 2 decimals. Year 0 cash flow = -160,000 Year 1 cash flow = 45,000 Year 2 cash flow = 31,000 Year 3 cash flow = 34,000 Year 4 cash flow = 30,000 Year 5 cash flow = 33,000 Year 6 cash flow = 38,000
What is the discount rate at which the following cash flows have a NPV of $0?...
What is the discount rate at which the following cash flows have a NPV of $0? Answer in %, rounding to 2 decimals. Year 0 cash flow = -133,000 Year 1 cash flow = 34,000 Year 2 cash flow = 40,000 Year 3 cash flow = 33,000 Year 4 cash flow = 41,000 Year 5 cash flow = 33,000 Year 6 cash flow = 45,000
A colleague asks for your help in finding the discount rate where the NPV=0 for a...
A colleague asks for your help in finding the discount rate where the NPV=0 for a set of cash flows. You quickly recall that this is the IRR for a project. Answer in %, rounding to 2 decimals. Year 0 cash flow = -122,000 Year 1 cash flow = 33,000 Year 2 cash flow = 34,000 Year 3 cash flow = 35,000 Year 4 cash flow = 33,000
A colleague asks for your help in finding the discount rate where the NPV=0 for a set of cash flows. You quickly recall that this is the IRR for a project. Answer in %, rounding to 2 decimals.
A colleague asks for your help in finding the discount rate where the NPV=0 for a set of cash flows. You quickly recall that this is the IRR for a project. Answer in %, rounding to 2 decimals.Year 0 cash flow = -109,000Year 1 cash flow = 43,000Year 2 cash flow = 35,000Year 3 cash flow = 36,000Year 4 cash flow = 37,000
A colleague asks for your help in finding the discount rate where the NPV=0 for a...
A colleague asks for your help in finding the discount rate where the NPV=0 for a set of cash flows. You quickly recall that this is the IRR for a project. Answer in %, rounding to 2 decimals. Year 0 cash flow = -118,000 Year 1 cash flow = 43,000 Year 2 cash flow = 37,000 Year 3 cash flow = 45,000 Year 4 cash flow = 39,000
A colleague asks for your help in finding the discount rate where the NPV=0 for a...
A colleague asks for your help in finding the discount rate where the NPV=0 for a set of cash flows. You quickly recall that this is the IRR for a project. Answer in %, rounding to 2 decimals. Year 0 cash flow = -101,000 Year 1 cash flow = 33,000 Year 2 cash flow = 40,000 Year 3 cash flow = 38,000 Year 4 cash flow = 42,000
A colleague asks for your help in finding the discount rate where the NPV=0 for a...
A colleague asks for your help in finding the discount rate where the NPV=0 for a set of cash flows. You quickly recall that this is the IRR for a project. Answer in %, rounding to 2 decimals. Year 0 cash flow = -115,000 Year 1 cash flow = 38,000 Year 2 cash flow = 36,000 Year 3 cash flow = 41,000 Year 4 cash flow = 32,000
What is the NPV of a project with the following cash flows and a discount rate...
What is the NPV of a project with the following cash flows and a discount rate of 12% Initial Investment (1,000,000) Cash Flow Year 1 400,000 Year 2 300,000 Year 3 400,000 Year 4 200,000
What is the NPV of the following cash flows at a discount rate of zero percent?...
What is the NPV of the following cash flows at a discount rate of zero percent? What if the discount rate is 10 percent? If it is 20 percent? If it is 30 percent? (13,900) Year 0 Year 1 6,400 $ Year 2 8,700 Year 3 5,900 Discount rate 0% 10% Discount rate Discount rate 20% 30% Discount rate Complete the following analysis. Do not hard code values in your calculations. You must use the built-in Excel function to answer...
ollowing cash flows: 0 1 2 3 a) What is the NPV at a discount rate...
ollowing cash flows: 0 1 2 3 a) What is the NPV at a discount rate of 0%? b) What is the NPV at a discount rate of 10%? c) What is the NPV at a discount rate of 20%? d) What is the NPV at a discount rate of 30%? -$16,46 7,100 8,400 6,900
What is the discount rate at which the following cash flows have a NPV of $0? Answer in %, rounding to 2 decimals. Year 0 cash flow = -160,000 Year 1 cash flow = 45,000 Year 2 cash flow = 31,000 Year 3 cash flow = 34,000 Year 4 cash flow = 30,000 Year 5 cash flow = 33,000 Year 6 cash flow = 38,000
What is the discount rate at which the following cash flows have a NPV of $0? Answer in %, rounding to 2 decimals. Year 0 cash flow = -133,000 Year 1 cash flow = 34,000 Year 2 cash flow = 40,000 Year 3 cash flow = 33,000 Year 4 cash flow = 41,000 Year 5 cash flow = 33,000 Year 6 cash flow = 45,000
What is the NPV of a project with the following cash flows and a discount rate of 12% Initial Investment (1,000,000) Cash Flow Year 1 400,000 Year 2 300,000 Year 3 400,000 Year 4 200,000
What is the NPV of the following cash flows at a discount rate of zero percent? What if the discount rate is 10 percent? If it is 20 percent? If it is 30 percent? (13,900) Year 0 Year 1 6,400 $ Year 2 8,700 Year 3 5,900 Discount rate 0% 10% Discount rate Discount rate 20% 30% Discount rate Complete the following analysis. Do not hard code values in your calculations. You must use the built-in Excel function to answer...
ollowing cash flows: 0 1 2 3 a) What is the NPV at a discount rate of 0%? b) What is the NPV at a discount rate of 10%? c) What is the NPV at a discount rate of 20%? d) What is the NPV at a discount rate of 30%? -$16,46 7,100 8,400 6,900
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 10 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 10 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 10 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 10 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 10 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 10 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 10 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 10 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 10 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 10 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 10 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 10 months ago