A project costs $164 today. if a cash flow of $231 will be received at the...
A project costs $164 today. if a cash flow of $231 will be received at the end of seven years, what is its IRR?
keep two decimal places
Homework Answers
Ans 5.02%
| Year | Project Cash Flows (i) | DF@ 10% | DF@ 10% (ii) | PV of Project ( (i) * (ii) ) | DF@ 5% (iii) | PV of Project ( (i) * (iii) ) |
| 0 | -164 | 1 | 1 | (164.00) | 1 | (164.00) |
| 1 | 0 | 1/((1+10%)^1) | 0.909 | - | 0.952 | - |
| 2 | 0 | 1/((1+10%)^2) | 0.826 | - | 0.907 | - |
| 3 | 0 | 1/((1+10%)^3) | 0.751 | - | 0.864 | - |
| 4 | 0 | 1/((1+10%)^4) | 0.683 | - | 0.823 | - |
| 5 | 0 | 1/((1+10%)^5) | 0.621 | - | 0.784 | - |
| 6 | 0 | 1/((1+10%)^4) | 0.564 | - | 0.746 | - |
| 7 | 231 | 1/((1+10%)^5) | 0.513 | 118.54 | 0.711 | 164.17 |
| PV | (45.46) | NPV | 0.17 | |||
| IRR = | Ra + NPVa / (NPVa - NPVb) * (Rb - Ra) | |||||
| 10% -45.46 / (45.46 + 0.17)*5% | ||||||
| 5.02% | ||||||
Add Answer to:
A project costs $164 today. if a cash flow of $231 will be
received at the...
Consider two projects, A and B. Project A's first cash flow is $10,100 and is received...
Consider two projects, A and B. Project A's first cash flow is $10,100 and is received three years from today. Future cash flows for Project A grow by 4 percent in perpetuity. Project B's first cash flow is −$8,800, which occurs two years from today, and will continue in perpetuity. Assume that the appropriate discount rate is 12 percent. a. What is the present value of each project? (A negative answer should be indicated by a minus sign. Do not...
Consider two projects, A and B. Project A's first cash flow is $9,200 and is received...
Consider two projects, A and B. Project A's first cash flow is $9,200 and is received three years from today. Future cash flows for Project A grow by 3 percent in perpetuity, Project Bs first cash flow is -$9,700, which occurs two years from today, and will continue in perpetuity. Assume that the appropriate discount rate is 11 percent. a. What is the present value of each project? (A negative answer should be Indicated by a minus sign. Do not...
Consider two projects, A and B. Project A's first cash flow is $10,200 and is received...
Consider two projects, A and B. Project A's first cash flow is $10,200 and is received three years from today. Future cash flows for Project A grow by 3 percent in perpetuity. Project B's first cash flow is -$9,500, which occurs two years from today, and will continue in perpetuity. Assume that the appropriate discount rate is 11 percent. a. What is the present value of each project? (A negative answer should be indicated by a minus sign. Do not...
Consider two projects, A and B. Project A's first cash flow is $10,100 and is received...
Consider two projects, A and B. Project A's first cash flow is $10,100 and is received three years from today. Future cash flows for Project A grow by 4 percent in perpetuity. Project B's first cash flow is −$8,800, which occurs two years from today, and will continue in perpetuity. Assume that the appropriate discount rate is 12 percent. a. What is the present value of each project? (A negative answer should be indicated by a minus sign. Do not...
Consider two projects, A and B. Project A's first cash flow is $10,200 and is received...
Consider two projects, A and B. Project A's first cash flow is $10,200 and is received three years from today. Future cash flows for Project A grow by 3 percent in perpetuity. Project B's first cash flow is -$9,500, which occurs two years from today, and will continue in E perpetuity. Assume that the appropriate discount rate is 11 percent. a. What is the present value of each project? (A negative answer should be indicated by a minus sign. Do...
Consider two streams of cash flows, A and B. Stream A’s first cash flow is $9,600...
Consider two streams of cash flows, A and B. Stream A’s first cash flow is $9,600 and is received three years from today. Future cash flows in Stream A grow by 3 percent in perpetuity. Stream B’s first cash flow is −$9,300, is received two years from today, and will continue in perpetuity. Assume that the appropriate discount rate is 11 percent. a. What is the present value of each stream? (A negative answer should be indicated by a...
Comparing all methods. Risky Business is looking at a project with the following estimated cash flow:...
Comparing all methods. Risky Business is looking at a project with the following estimated cash flow: 5. Risky Business wants to know the payback period, NPV, IRR, MIRR, and Pl of this project. The appropriate discount rate for the project is 9%. If the cutoff period is 6 years for major projects, determine whether the management at Risky Business will accept or reject the project under the five different decision models. What is the payback period for the new project...
Consider two streams of cash flows, A and B. Stream A’s first cash flow is $9,500...
Consider two streams of cash flows, A and B. Stream A’s first cash flow is $9,500 and is received three years from today. Future cash flows in Stream A grow by 4 percent in perpetuity. Stream B’s first cash flow is −$9,400, is received two years from today, and will continue in perpetuity. Assume that the appropriate discount rate is 12 percent. a. What is the present value of each stream? (A negative amount should be indicated by a minus...
A project costs $20,000 today and it is projected to generate annual cash inflows of $4,000...
A project costs $20,000 today and it is projected to generate annual cash inflows of $4,000 for 8 years starting in one year (end of year 1). If the cost of capital is 11%, what is this project's Profitability Index (PI)? Round to two decimal places.
comparing all methods. Risky Business is looking at a proiect with the following estimated cash flow....
comparing all methods. Risky Business is looking at a proiect with the following estimated cash flow. RISKY buon wants to know the payback period, NPV, IRR. MIRR. and Pl of this project. The appropriate discount rate for the project is reject the project under the five different decision models. termine whether the management at Risky Business will accept or What is the payback period for the new project at Risky Business? years (Round to two decimal places.) (Select from the...
Consider two projects, A and B. Project A's first cash flow is $9,200 and is received three years from today. Future cash flows for Project A grow by 3 percent in perpetuity, Project Bs first cash flow is -$9,700, which occurs two years from today, and will continue in perpetuity. Assume that the appropriate discount rate is 11 percent. a. What is the present value of each project? (A negative answer should be Indicated by a minus sign. Do not...
Consider two projects, A and B. Project A's first cash flow is $10,200 and is received three years from today. Future cash flows for Project A grow by 3 percent in perpetuity. Project B's first cash flow is -$9,500, which occurs two years from today, and will continue in perpetuity. Assume that the appropriate discount rate is 11 percent. a. What is the present value of each project? (A negative answer should be indicated by a minus sign. Do not...
Consider two projects, A and B. Project A's first cash flow is $10,200 and is received three years from today. Future cash flows for Project A grow by 3 percent in perpetuity. Project B's first cash flow is -$9,500, which occurs two years from today, and will continue in E perpetuity. Assume that the appropriate discount rate is 11 percent. a. What is the present value of each project? (A negative answer should be indicated by a minus sign. Do...
Comparing all methods. Risky Business is looking at a project with the following estimated cash flow: 5. Risky Business wants to know the payback period, NPV, IRR, MIRR, and Pl of this project. The appropriate discount rate for the project is 9%. If the cutoff period is 6 years for major projects, determine whether the management at Risky Business will accept or reject the project under the five different decision models. What is the payback period for the new project...
comparing all methods. Risky Business is looking at a proiect with the following estimated cash flow. RISKY buon wants to know the payback period, NPV, IRR. MIRR. and Pl of this project. The appropriate discount rate for the project is reject the project under the five different decision models. termine whether the management at Risky Business will accept or What is the payback period for the new project at Risky Business? years (Round to two decimal places.) (Select from the...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 11 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 11 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 11 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 11 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 11 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 11 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 11 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 11 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 11 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 11 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 11 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 11 months ago