PLEASE WORK OUT DO NOT USE
EXCEL
Homework Answers
let i% be the IRR, then
PW = -14000 + 5000 * (P/A,i%,4) + 500 * (P/G,i%,4) = 0
5000 * (P/A,i%,4) + 500 * (P/G,i%,4) = 14000
dividing by 500, we get
10 * (P/A,i%,4) + (P/G,i%,4) = 28
using trail and error method
When I = 20%, value of 10 * (P/A,i%,4) + (P/G,i%,4) = 10 *2.588735 + 3.298611 = 29.1859
When I = 21%, value of 10 * (P/A,i%,4) + (P/G,i%,4) = 10 *2.540441 + 3.211483 = 28.6159
When I = 22%, value of 10 * (P/A,i%,4) + (P/G,i%,4) = 10 *2.493641 + 3.127473 = 28.0639
When I = 23%, value of 10 * (P/A,i%,4) + (P/G,i%,4) = 10 *2.448272 + 3.046443 = 27.5292
using interpolation
i = 22% + (28.0639 - 28) / (28.0639 - 27.5292)*(23% - 22%)
i = 22% + 0.1195%
i = 22.12% (Approx)
Add Answer to:
PLEASE WORK OUT DO NOT USE
EXCEL
1. For the following cashflows, compute the IRR: Year...
please write out answer do not use excel please. Your company is considering expanding operations and...
please write out answer do not use excel please.
Your company is considering expanding operations and buying a new machine to handle the increased volume. The machine's basic price is $100,000, and it will cost another $15,000 to modify it for special use by your firm. The machine falls into the MACRS three-year class, and it will be sold after three years for $15,000. Use of the machine will require an increase in net working capital (inventory) of $3,000. The...
Please help and solve this. Please do NOT use excel. Please do NOT show in excel....
Please help and solve this. Please do NOT use excel. Please do NOT show in excel. Please SHOW ALL work and formulas. Please show step by step. Please keep it neat and organized. Thank you. A project has the following cash flows: Year Cash Flow 0 $64,000 1 –30,000 2 –48,000 Required: (a) What is the IRR for this project? (Click to select) 13.42% 12.63% 13.82% 13.16% 12.9% (b) What is the NPV of this project, if the required...
Use a financial calculator or an Excel spreadsheet to estimate the IRR for the following investment...
Use a financial calculator or an Excel spreadsheet to estimate the IRR for the following investment The yield for investment Ais %. (Round to two decimal places.) Data Table Year $2,314 Initial Future End of Investment Investment Value $1,600 $9,300 $17.800 $700 $4,110 $2,900 $4,256 $5,500 $20.996 (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.
Please use Excel and shiw work. At the beginning of the tax year, Liz holds a...
Please use Excel and shiw work.
At the beginning of the tax year, Liz holds a $10,000 stock basis as the sole shareholder of Randy, Inc., an s corporation. During the year, Randy, Inc. reports the following. Taxable operating income 40,000 Net short-term capital loss 14,000 Cash distributions to Liz 57,000 Determine Liz's stock basis at the end of the year and the treatment of her cash distribution.
PLEASE HELP ME UNDERSTAND THIS PROBLEM IN EXCEL WITH ALL THE EXCEL FORMULAS. Annual cash inflows...
PLEASE HELP ME UNDERSTAND THIS PROBLEM IN EXCEL WITH ALL THE EXCEL FORMULAS. Annual cash inflows that will arise from two competing investment projects are given below: Year Investment A Investment B 1 $ 5,000 $8,000 2 6,000 7,000 3 7,000 6,000 4 8,000 5,000 Total $26,000 $26,000 The discount rate is 9%. Required: Compute the present value of the cash inflows for each investment. Each investment opportunity will require the same initial investment. (Use Microsoft Excel...
Compute the Modified IRR (MIRR) of the following cash flow schedule using the =IRR( ) Excel...
Compute the Modified IRR (MIRR) of the following cash flow schedule using the =IRR( ) Excel function Why is your answer different than in Q4? What are you assuming about the company's project? The discount rate is 11.9% Time 0 1 2 3 4 5 6 CFs -200 -100 0 120 120 120 100
Please use the formula not the excel sheet. A project has the following financial considerations: •...
Please use the formula not the excel sheet.
A project has the following financial considerations: • initial cost of $30,000, • net revenues of $6,000 the second year, increasing by $500 thereafter for the next year for 10 years (i.e., revenue O the 1st year, $6,000 the 2nd year, $6,500 the 3rd year, and so on) • salvage value of $10,000 at the end of the gth year • MARR is 6%/year Please be sure to answer both part a...
please show all work in excel if possible. 9. m u me Duiger has an opportunity...
please show all work in excel if possible.
9. m u me Duiger has an opportunity cost of 15%. (NPV & IRR) Two projects, Alpha and Beta have free cash flows listed below. The firm has a cost of capital of 15%. Calculate the NPV and IRR of Alpha and Beta and determine if these independent projects should be selected: Alpha Beta Year 0 1 -$25,000 $55,000 Year 1 $5,000 $10,000 Year 2 $5,000 $10,000 $5,000 $10,000 Year 4 $5,000...
Exercise 26-17A Using Excel to compute IRR LO P4 Following is information on two alternative investments...
Exercise 26-17A Using Excel to compute IRR LO P4 Following is information on two alternative investments being considered by Jolee Company. The company requires a 11% return from its investments. Project A $(162, 000) Project B $(107,000) Initial investment Expected net cash flows in: Year 1 Year 2 Year 3 Year 4 Year 5 40, 500 56, 500 80, 795 90, 900 65,500 32,500 50, 500 66, 500 66,500 66,500 Compute the internal rate of return for each of the...
please give a written answer, please do not use excel as it has to be written...
please give a written answer, please do not use excel as it has
to be written out. thank you.
You must analyze the cash flows of two projects, S and L. Project S: CFO = -1500; CF1 = 800; CF2 = 700; CF3 = 100; CF4 = 600 Project L: CFO = -1500; CF1 = 200; CF2 = 600; CF3 = 900; CF4 = 700 Given a required rate of return of 10%, what is the IRR of the better...
please write out answer do not use excel please.
Your company is considering expanding operations and buying a new machine to handle the increased volume. The machine's basic price is $100,000, and it will cost another $15,000 to modify it for special use by your firm. The machine falls into the MACRS three-year class, and it will be sold after three years for $15,000. Use of the machine will require an increase in net working capital (inventory) of $3,000. The...
Use a financial calculator or an Excel spreadsheet to estimate the IRR for the following investment The yield for investment Ais %. (Round to two decimal places.) Data Table Year $2,314 Initial Future End of Investment Investment Value $1,600 $9,300 $17.800 $700 $4,110 $2,900 $4,256 $5,500 $20.996 (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.
Please use Excel and shiw work.
At the beginning of the tax year, Liz holds a $10,000 stock basis as the sole shareholder of Randy, Inc., an s corporation. During the year, Randy, Inc. reports the following. Taxable operating income 40,000 Net short-term capital loss 14,000 Cash distributions to Liz 57,000 Determine Liz's stock basis at the end of the year and the treatment of her cash distribution.
Please use the formula not the excel sheet.
A project has the following financial considerations: • initial cost of $30,000, • net revenues of $6,000 the second year, increasing by $500 thereafter for the next year for 10 years (i.e., revenue O the 1st year, $6,000 the 2nd year, $6,500 the 3rd year, and so on) • salvage value of $10,000 at the end of the gth year • MARR is 6%/year Please be sure to answer both part a...
please show all work in excel if possible.
9. m u me Duiger has an opportunity cost of 15%. (NPV & IRR) Two projects, Alpha and Beta have free cash flows listed below. The firm has a cost of capital of 15%. Calculate the NPV and IRR of Alpha and Beta and determine if these independent projects should be selected: Alpha Beta Year 0 1 -$25,000 $55,000 Year 1 $5,000 $10,000 Year 2 $5,000 $10,000 $5,000 $10,000 Year 4 $5,000...
Exercise 26-17A Using Excel to compute IRR LO P4 Following is information on two alternative investments being considered by Jolee Company. The company requires a 11% return from its investments. Project A $(162, 000) Project B $(107,000) Initial investment Expected net cash flows in: Year 1 Year 2 Year 3 Year 4 Year 5 40, 500 56, 500 80, 795 90, 900 65,500 32,500 50, 500 66, 500 66,500 66,500 Compute the internal rate of return for each of the...
please give a written answer, please do not use excel as it has
to be written out. thank you.
You must analyze the cash flows of two projects, S and L. Project S: CFO = -1500; CF1 = 800; CF2 = 700; CF3 = 100; CF4 = 600 Project L: CFO = -1500; CF1 = 200; CF2 = 600; CF3 = 900; CF4 = 700 Given a required rate of return of 10%, what is the IRR of the better...
Most questions answered within 3 hours.
-
The activation energy for a given reaction is 50.3 kJ/mol. If
the rate constant for the...
asked 30 seconds from now -
An entomologist discovers a dung beetle rolling a ball of dung
along the ground, and decides...
asked 1 hour ago -
Humans have used horses for transportation for millions of
years. Therefore, they will use horses for...
asked 3 hours ago -
The following are the Jensen Corporation's unit costs of making
and selling an item at a...
asked 4 hours ago -
Does direct Medicare reimbursement of Advanced practice nurses
increase access to their services?
asked 4 hours ago -
List and explain why a company would choose to use a
published
compensation survey vs. creating...
asked 5 hours ago -
A discrete random variable X can take values from 1 to 10. Find
the variance of...
asked 5 hours ago -
The primary financial goal of a corporation is to maximize:
shareholders wealth.
earnings per share.
stock...
asked 5 hours ago -
determine whether the vectors u=(1,2,3,), v=(-2,1,0) and
w=(1,0,1) are linearly dependent or independent.
asked 5 hours ago -
python
Define a function called print_values which takes a dictionary
object as a parameter. The function...
asked 6 hours ago -
In Chapter 1 you created a program named Triangle in
which you displayed a seven-line triangle...
asked 6 hours ago -
Research question: What are the differences between separately
stated and non separately stated transactions in an...
asked 6 hours ago