A firm evaluates all of its projects by applying the IRR rule. The cash flows for...
A firm evaluates all of its projects by applying the IRR rule. The cash flows for a project is shown below and the firm requires 15% return on this type of project. First, compute the IRR of the project in box 1. (Do not include the percent sign (%). Round your answer to 2 decimal places. (e.g., 32.16)) Then, make the investment decision based on the IRR by inputing either "accept" or "reject" in box 2. Year Cash Flow 0 −$36,500 1 21,000 2 17,000 3 7,000
Homework Answers
Let irr be x%
At irr,present value of inflows=present value of outflows.
36,500=21000/1.0x+17000/1.0x^2+7000/1.0x^3
Hence x=irr=13.47(Approx).
Hence since irr is less than required return;we must reject the project.
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A firm evaluates all of its projects by applying the IRR rule.
The cash flows for...
A firm evaluates all of its projects by applying the IRR rule. A project under consideration...
A firm evaluates all of its projects by applying the IRR rule. A project under consideration has the following cash flows: Year 0 1 Cash Flow -$34,000 15,000 17,000 13,000 WN- If 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 I % Should the firm accept the project? Accept Reject
A firm evaluates all of its projects by applying the IRR rule. A firm evaluates all...
A firm evaluates all of its projects by applying the IRR
rule.
A firm evaluates all of its projects by applying the IRR rule. Year Cash Flow 0 $ 154,000 62,000 1 - NM 77,000 61,000 What is the project's IRR? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Internal rate of return If the required return is 13 percent, should the firm accept the project?
A firm evaluates all of its projects by applying the IRR rule. A project under consideration...
A firm evaluates all of its projects by applying the IRR rule. A project under consideration has the following cash flows: Year Cash Flows 0 -$34,000 1 $15,000 2 $17,000 3 $13,000 1) If the required return is 14 percent, what is the IRR for this project? 2) Should the firm accept the project? A) Reject B) Accept
A firm evaluates all of its projects by applying the IRR rule. A project under consideration...
A firm evaluates all of its projects by applying the IRR rule. A project under consideration has the following cash flows: Year 0 Cash Flow -$ 28,200 12,200 15,200 11,200 If the required return is 13 percent, what is the IRR for this project? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) IRR Should the firm accept the project? Yes No
A firm evaluates all of its projects by applying the IRR rule. A project under consideration...
A firm evaluates all of its projects by applying the IRR rule. A project under consideration has the following cash flows: Year WN - Cash Flow -$ 28,800 12,800 15,800 11,800 If the required return is 13 percent, what is the IRR for this project? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) IRR Should the firm accept the project? O Yes O No
A firm evaluates all of its projects by applying the IRR rule. A project under consideration...
A firm evaluates all of its projects by applying the IRR rule. A project under consideration has the following cash flows: 0 Year Cash Flow $27,000 11,000 14,000 10,000 6.66 points eBook If the required return is 16 percent, what is the IRR for this project? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Print References IRR Should the firm accept the project? Yes No
A firm evaluates all of its projects by applying the IRR rule. A project under consideration has the following cash...
A firm evaluates all of its projects by applying the IRR rule. A project under consideration has the following cash flows: points Year Cash Flow 0 29.000 13,000 16.000 12.000 eBook References If the required return is 15 percent. what is the IRR for this project? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g. 32.16.) IRR % Should the firm accept the project?
A firm evaluates all of its projects by applying the IRR rule. Year Cash Flow 147,000...
A firm evaluates all of its projects by applying the IRR rule. Year Cash Flow 147,000 -$ 69,000 1 70,000 2 54,000 What is the project's IRR? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Internal rate of return If the required retun is 16 percent, should the firm accept the project?
A firm evaluates all of its projects by applying the IRR rule. Year Cash Flow 0...
A firm evaluates all of its projects by applying the IRR rule. Year Cash Flow 0 $ 164,000 52,000 87,000 71,000 What is the project's IRR? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Internal rate of return If the required return is 12 percent, should the firm accept the project?
A firm evaluates all of its projects by applying the IRR rule. Year Cash Flow 147,000...
A firm evaluates all of its projects by applying the IRR rule. Year Cash Flow 147,000 -$ 0 69,000 1 70,000 2 54,000 3 What is the project's IRR? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Internal rate of return % If the required return is 16 percent, should the firm accept the project?
A firm evaluates all of its projects by applying the IRR rule. A project under consideration has the following cash flows: Year 0 1 Cash Flow -$34,000 15,000 17,000 13,000 WN- If 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 I % Should the firm accept the project? Accept Reject
A firm evaluates all of its projects by applying the IRR
rule.
A firm evaluates all of its projects by applying the IRR rule. Year Cash Flow 0 $ 154,000 62,000 1 - NM 77,000 61,000 What is the project's IRR? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Internal rate of return If the required return is 13 percent, should the firm accept the project?
A firm evaluates all of its projects by applying the IRR rule. A project under consideration has the following cash flows: Year 0 Cash Flow -$ 28,200 12,200 15,200 11,200 If the required return is 13 percent, what is the IRR for this project? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) IRR Should the firm accept the project? Yes No
A firm evaluates all of its projects by applying the IRR rule. A project under consideration has the following cash flows: Year WN - Cash Flow -$ 28,800 12,800 15,800 11,800 If the required return is 13 percent, what is the IRR for this project? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) IRR Should the firm accept the project? O Yes O No
A firm evaluates all of its projects by applying the IRR rule. A project under consideration has the following cash flows: 0 Year Cash Flow $27,000 11,000 14,000 10,000 6.66 points eBook If the required return is 16 percent, what is the IRR for this project? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Print References IRR Should the firm accept the project? Yes No
A firm evaluates all of its projects by applying the IRR rule. A project under consideration has the following cash flows: points Year Cash Flow 0 29.000 13,000 16.000 12.000 eBook References If the required return is 15 percent. what is the IRR for this project? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g. 32.16.) IRR % Should the firm accept the project?
A firm evaluates all of its projects by applying the IRR rule. Year Cash Flow 147,000 -$ 69,000 1 70,000 2 54,000 What is the project's IRR? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Internal rate of return If the required retun is 16 percent, should the firm accept the project?
A firm evaluates all of its projects by applying the IRR rule. Year Cash Flow 0 $ 164,000 52,000 87,000 71,000 What is the project's IRR? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Internal rate of return If the required return is 12 percent, should the firm accept the project?
A firm evaluates all of its projects by applying the IRR rule. Year Cash Flow 147,000 -$ 0 69,000 1 70,000 2 54,000 3 What is the project's IRR? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Internal rate of return % If the required return is 16 percent, should the firm accept the project?
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