To find the IRR, we need to put the following values in the financial calculator:
CF0 = -28,900; C01 = 12,900; F01 = 1; C02 = 15,000; F02 = 1; C03 = 11,900; F03 = 1;
Press IRR, then CPT, which gives us 18.10
So, IRR for this project is 18.10%
vital silence, inc., has a project with the following cash flows: year cash flow 0 -$28,900...
Problem 5-5 Calculating IRR Vital Silence, Inc., has a project with the following cash flows: Year Cash Flow 0 –$ 28,900 1 12,900 2 15,900 3 11,900 The appropriate discount rate is 14 percent. What is the IRR for this project? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Should the firm accept the project? Reject Accept
Vital Silence, Inc., has a project with the following cash flows: Year Cash Flow 0 –$ 27,400 1 11,400 2 14,400 3 10,400 The required return is 16 percent. What is the IRR for this project? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) IRR % Should the firm accept the project? Accept Reject
Vital Silence, Inc., has a project with the following cash flows Year Cash Flow 0 28,600 12,600 15,600 11,600 The required return is 14 percent. What is the IRR for this project? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) IRR Should the firm accept the project? O Accept ○ Reject References eBook & Resources Section: 5 Worksheet Difficulty: 1 Basic
rate is U percen vvInaL .. Calculating IRR Vital Silence, Inc., has a project with the followin cash flows: Cash Flows ($) -$24,000 9,700 13,700 6,400 Year The company evaluates all projects by applying the IRR rule. If the appropriate interest rate is 9 percent, should the company accept the project? f return for the cash flows of the
A project has the following cash flows: year. Cash flow 0. $71,000 1. -50,000. 2. -29,200 a. What is the IRR for the project? (Do not round intermediate calculations and enter answer as a percent round to 2 decimal places) b. What is the NPV of this project if the required return is 6 percent? c. What is the NPV of the project if the required return is 0 percent? d. What is the NPV of the project if the...
Your company has a project available with the following cash flows: Year. Cash Flow 0. $80,200 1 21,950 2. 25,900 3. 31,700 4. 26,450 5. 20,700 If the required return is 16 percent, should the project be accepted based on the IRR? A. No, because the IRR is 17.75 Percent B. Yes, because the IRR is 18.90 Percent C. No, because the IRR is 18.90 Percent D. Yes, because the IRR is 17.45 Percent E. Yes, because the IRR is...
A project has the following cash flows: Year Cash Flow 0 $64,200 1 –30,200 2 –48,200 Required: (a) What is the IRR for this project? (Click to select)13.97%12.77%13.3%13.03%13.57% (b) What is the NPV of this project, if the required return is 11 percent? (Click to select)$-2,169.96$-2,042.31$2,127.41$-2,127.41$-2,233.78 (c) NPV at 0 percent? (Click to select)$-14,910.00$-14,200.00$-14,484.00$14,200.00$-13,632.00 (d) NPV at 22 percent? (Click to select)$7,203.38$-7,062.13$6,779.65$7,062.13$7,415.24
1. Allen Inc., is considering a project with the following cash flows. Year Cash Flows 0 -$32,374 1 $6,334 2 $13,790 3 $12,995 4 $20,673 5 $29,260 The company uses a discount rate of 7 percent on all of its projects. Calculate the profitability index of the project? 2. Elway Corp. is considering a project with the following cash flows. Year Cash Flows 0 -$45,331 1 $15,903 2 $24,490 3 $34,625 4 -$11,486 5 $40,937 The company uses a discount...
A company. has a project available with the following cash flows: Year Cash Flow 0 −$35,270 1 12,660 2 14,740 3 19,870 4 11,180 If the required return for the project is 8.2 percent, what is the project's NPV?
Bruin, Inc., has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 –$36,600 –$36,600 1 18,930 6,490 2 14,430 12,990 3 11,930 19,490 4 8,930 23,490 a. What is the IRR for Project A? b. What is the IRR for Project B? c. If the required return is 14 percent, what is the NPV for Project A? d. If...