IRR

Question

Question

IRR

Project L costs $65,000, its expected cash inflows are $12,000 per year for 9 years, and its WACC is 9%.What is project's IRR? Without the use of calculator.

finance

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Let IRR be x%
At IRR, the present value of inflows=present value of outflows.

65000=12000/1.0x+12000/1.0x^2+...+12000/1.0x^9

Hence x=IRR=11.57%(Approx).

answered by: gavin

Add a comment

Answer 2

Similar Homework Help Questions

1A. Project L costs $35,000, its expected cash inflows are $9,000 per year for 8 years,...

1A. Project L costs $35,000, its expected cash inflows are $9,000 per year for 8 years, and its WACC is 10%. What is the project's NPV? Round your answer to the nearest cent. Do not round your intermediate calculations. 1B. Project L costs $46,724.57, its expected cash inflows are $9,000 per year for 11 years, and its WACC is 9%. What is the project's IRR? Round your answer to two decimal places. 1C. Project L costs $65,000, its expected cash...
IRR Project L costs $58,755.79, its expected cash inflows are $13,000 per year for 9 years,...

IRR Project L costs $58,755.79, its expected cash inflows are $13,000 per year for 9 years, and its WACC is 14%. What is the project's IRR? Round your answer to two decimal places. MIRR Project L costs $60,000, its expected cash inflows are $10,000 per year for 8 years, and its WACC is 13%. What is the project's MIRR? Round your answer to two decimal places. Do not round your intermediate calculations. PAYBACK PERIOD Project L costs $55,000, its expected...
1. Project L costs $43,979.97, its expected cash inflows are $10,000 per year for 9 years,...

1. Project L costs $43,979.97, its expected cash inflows are $10,000 per year for 9 years, and its WACC is 10%. What is the project's IRR? Round your answer to two decimal places. 2. Project L costs $65,000, its expected cash inflows are $15,000 per year for 8 years, and its WACC is 14%. What is the project's MIRR? Round your answer to two decimal places. Do not round your intermediate calculations. 3. Project L costs $70,000, its expected cash...

IRR Project L costs $56,400.61, its expected cash inflows are $12,000 per year for 11 years,...

IRR Project L costs $56,400.61, its expected cash inflows are $12,000 per year for 11 years, and its WACC is 10%. What is the project's IRR? Round your answer to two decimal places.
1.Project L costs $35,000, its expected cash inflows are $13,000 per year for 9 years, and...

1.Project L costs $35,000, its expected cash inflows are $13,000 per year for 9 years, and its WACC is 9%. What is the project's NPV? Do not round intermediate calculations. Round your answer to the nearest cent. 2.Project L costs $50,011.04, its expected cash inflows are $12,000 per year for 8 years, and its WACC is 11%. What is the project's IRR? Round your answer to two decimal places 3.Project L costs $60,000, its expected cash inflows are $15,000 per...
Click here to read the eBook: Internal Rate of Return (IRR) IRR Project L costs $39,183.66,...

Click here to read the eBook: Internal Rate of Return (IRR) IRR Project L costs $39,183.66, its expected cash inflows are $9,000 per year for 9 years, and its WACC is 11%. What is the project's IRR? Round your answer to two decimal places.

IRR Project L costs $73,123.92, its expected cash inflows are $14,000 per year for 11 years,...

IRR Project L costs $73,123.92, its expected cash inflows are $14,000 per year for 11 years, and its WACC is 9%. What is the project's IRR? Round your answer to two decimal places.
IRR Project L costs $44,726.06, its expected cash inflows are $10,000 per year for 8 years,...

IRR Project L costs $44,726.06, its expected cash inflows are $10,000 per year for 8 years, and its WACC is 10%. What is the project's IRR? Round your answer to two decimal places.
Project K costs $65,000, its expected cash inflows are $13,000 per year for 11 years, and...

Project K costs $65,000, its expected cash inflows are $13,000 per year for 11 years, and its WACC is 12%. What is the project's NPV? Round your answer to the nearest cent. Project K costs $48,457.36, its expected cash inflows are $10,000 per year for 11 years, and its WACC is 12%. What is the project's IRR? Round your answer to two decimal places.

IRR, MIRR, NVP a. Project M costs $45,000, its expected cash inflows are $8,000 per year for 8 years, and its WACC is 9%. What is the project's MIRR? Do not round intermediate calculations. Round...

IRR, MIRR, NVP a. Project M costs $45,000, its expected cash inflows are $8,000 per year for 8 years, and its WACC is 9%. What is the project's MIRR? Do not round intermediate calculations. Round your answer to two decimal places.___% b. A company is analyzing two mutually exclusive projects, S and L, with the following cash flows: 0 1 2 3 4 Project S -$1,000 $883.36 $250 $5 $15 Project L -$1,000 $5 $240 $380 $807.41 The company's WACC...

IRR

Homework Answers

Add Answer to:
IRR

Post as a guest

Earn Coins

1A. Project L costs $35,000, its expected cash inflows are $9,000 per year for 8 years,...

IRR Project L costs $58,755.79, its expected cash inflows are $13,000 per year for 9 years,...

1. Project L costs $43,979.97, its expected cash inflows are $10,000 per year for 9 years,...

IRR Project L costs $56,400.61, its expected cash inflows are $12,000 per year for 11 years,...

1.Project L costs $35,000, its expected cash inflows are $13,000 per year for 9 years, and...

Click here to read the eBook: Internal Rate of Return (IRR) IRR Project L costs $39,183.66,...

IRR Project L costs $73,123.92, its expected cash inflows are $14,000 per year for 11 years,...

IRR Project L costs $44,726.06, its expected cash inflows are $10,000 per year for 8 years,...

Project K costs $65,000, its expected cash inflows are $13,000 per year for 11 years, and...

IRR, MIRR, NVP a. Project M costs $45,000, its expected cash inflows are $8,000 per year for 8 years, and its WACC is 9%. What is the project's MIRR? Do not round intermediate calculations. Round...

IRR

Homework Answers

Add Answer to: IRR

Post as a guest

Earn Coins

Add Answer to:
IRR