Homework Answers
I have provided with the formula of NPV, Net Present Value, where r is the rate of return and i is the time period. Rate of return is found by hit and trial so that NPV is close to 0.
I have attached two images, where NPV is closest to 0. I restricted rate of return to two decimal places only, and that is the reason why NPV was not found exactly to be 0.
But you can tell your teacher/instructor that the optimal rate of return would lie between 19.82% and 19.83%
![19.83 NPV = (Sum of (Cash Flow)/(1+r)] - Initial Investment 7399.03 Sum of cash flows -0.97 Discounted Year Cash Flow Cash Fl](http://img.homeworklib.com/questions/dc301740-7930-11ea-b298-bbdede9dc725.png?x-oss-process=image/resize,w_560)
![19.82 NPV = (Sum of (Cash Flow)/(1+r)] - Initial Investment 7401.39 Sum of cash flows 1.39 Discounted Year Cash Flow Cash Fl](http://img.homeworklib.com/questions/dc937f30-7930-11ea-982e-b5a7e1881af6.png?x-oss-process=image/resize,w_560)
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te of return for the following cash Compute the rate of return for the 7-8 flow....
6-2 A Compute the EUAB for these cash flows based on a 10% interest rate. 6000...
6-2 A Compute the EUAB for these cash flows based on a 10% interest rate. 6000 4500 3000 1500
EXAMPLE 18 Compute the rate of return for the investment represented by the following cash flow:...
EXAMPLE 18 Compute the rate of return for the investment represented by the following cash flow: Year 0 Cash Flow - $595 +250 +200 +150 +100 +50-
Use formulas (f/a,I,n) or whichever. 7-13 Compute the rate of return for the following cash flow...
Use formulas (f/a,I,n) or whichever.
7-13 Compute the rate of return for the following cash flow Year Cash Flow 1-5 -$6,209 6-10 10,000
EXAMPLE 18 Compute the rate of return for the investment represented by the following cash flow:...
EXAMPLE 18 Compute the rate of return for the investment represented by the following cash flow: Year Cash Flow -$595 0 1 +250 +200 +150 +100 +50- 2 3 4 5
REPOST 8. For the cash flows tabulated below, compute the rate of return to the nearest...
REPOST
8. For the cash flows tabulated below, compute the rate of return to the nearest 0.10% Year 0 10 11 through oo Incremental Cash Flow ($) -412 -5,000 1,000
Consider the following 5-years investment table of Agus's cash flow with required return rate j=11% (RRR)....
Consider the following 5-years investment table of Agus's cash flow with required return rate j=11% (RRR). Discounted is a discount factor based on RRR. Contribution is amount of money that Agus paid to start the business (investment). Whereas, return is amount of money that Agus received from the investment. Furthermore, PV Contrib is present value of Contribution based on RRR, then Net Cash Flow is Return minus Contribution. Moreover, Discounted Cash Flow is present value of Net Cash Flow based...
For the following cash flows, compute the following assuming a 10% interest rate: PW EAW FW...
For the following cash flows, compute the following assuming a 10% interest rate: PW EAW FW Discounted payback period (year at which the sum of or cumulative PW of cash flows in years 1 through N = initial investment) Benefit / Cost Ratio Find Internal rate of return of the cash flows Year Cash Flow 0 -4000 1 250 2 500 3 750 4 1000 5 1250 6 1500
Determine the Rate of Return (196) for the cash flow shown below, if the MARR is...
Determine the Rate of Return (196) for the cash flow shown below, if the MARR is 7%: Year 0 1-5 6-8 Cash Flow - 200,000 +50,000 +30,000 over 15% less than 10% 13% 11%
Please only do 7A-13 use 6% for financing rate and 12% for the investing rate television...
Please only do 7A-13 use 6% for financing rate and 12% for the
investing rate
television for $9000 down and monthly payments of $500. When he visited the lot, he found it was not something he wanted to own. After 40 months he was finally able to sell the lot. The new owner assumed the balance of the loan on the lot and paid Bill $19,000. What rate of return did Bill receive on his investment? e project, which had...
1. For the following cash flow using a discount rate of 6%, compute the following items:...
1. For the following cash flow using a discount rate of 6%, compute the following items: a) Present worth b) Future worth (at the end of year 10) c) Equivalent annual worth d) Internal rate of return e) Modified internal rate of return at a 10% borrowing and reinvestment rate f) Payback period (non-discounted) g) Payback period (discounted at discount rate) 0 $ 1 $ 2 $ 3 $ 4 $ 5 $ 6 $ 7 $ 8s 9 $...
6-2 A Compute the EUAB for these cash flows based on a 10% interest rate. 6000 4500 3000 1500
EXAMPLE 18 Compute the rate of return for the investment represented by the following cash flow: Year 0 Cash Flow - $595 +250 +200 +150 +100 +50-
Use formulas (f/a,I,n) or whichever.
7-13 Compute the rate of return for the following cash flow Year Cash Flow 1-5 -$6,209 6-10 10,000
EXAMPLE 18 Compute the rate of return for the investment represented by the following cash flow: Year Cash Flow -$595 0 1 +250 +200 +150 +100 +50- 2 3 4 5
REPOST
8. For the cash flows tabulated below, compute the rate of return to the nearest 0.10% Year 0 10 11 through oo Incremental Cash Flow ($) -412 -5,000 1,000
Consider the following 5-years investment table of Agus's cash flow with required return rate j=11% (RRR). Discounted is a discount factor based on RRR. Contribution is amount of money that Agus paid to start the business (investment). Whereas, return is amount of money that Agus received from the investment. Furthermore, PV Contrib is present value of Contribution based on RRR, then Net Cash Flow is Return minus Contribution. Moreover, Discounted Cash Flow is present value of Net Cash Flow based...
Determine the Rate of Return (196) for the cash flow shown below, if the MARR is 7%: Year 0 1-5 6-8 Cash Flow - 200,000 +50,000 +30,000 over 15% less than 10% 13% 11%
Please only do 7A-13 use 6% for financing rate and 12% for the
investing rate
television for $9000 down and monthly payments of $500. When he visited the lot, he found it was not something he wanted to own. After 40 months he was finally able to sell the lot. The new owner assumed the balance of the loan on the lot and paid Bill $19,000. What rate of return did Bill receive on his investment? e project, which had...
1. For the following cash flow using a discount rate of 6%, compute the following items: a) Present worth b) Future worth (at the end of year 10) c) Equivalent annual worth d) Internal rate of return e) Modified internal rate of return at a 10% borrowing and reinvestment rate f) Payback period (non-discounted) g) Payback period (discounted at discount rate) 0 $ 1 $ 2 $ 3 $ 4 $ 5 $ 6 $ 7 $ 8s 9 $...
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