Question

Use the following cash flows to answer: Year 0 = ($1,550); Year 1 = $850; Year...

Use the following cash flows to answer:

Year 0 = ($1,550); Year 1 = $850; Year 2 = $900. The firms WACC = 8%.

What is the IRR?

a) Between 7% & 8%

b) Between 8% & 9%

c) Between 9% & 10%

d) Between 10% & 11%

0 0
Add a comment Improve this question Transcribed image text
Know the answer?
Add Answer to:
Use the following cash flows to answer: Year 0 = ($1,550); Year 1 = $850; Year...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • 6. Use the following after-tax cash flows for project A and B to answer the following...

    6. Use the following after-tax cash flows for project A and B to answer the following question: (Numbers in parentheses are negative cash flows). These two projects are independent. Year     Cash Flow of A Cash Flow of B 0          ($2,400)             ($4,500) 1          $999                    $800 2          $950                    $950 3          ( $150)                   $950 4          $910                    $800 5          $990                    $900 6          ( $500)                  $1980 What is the approximate IRR of project A if the required rate of...

  • What is the IRR for the following set of cash flows Year Cash Flow 0:- 5000...

    What is the IRR for the following set of cash flows Year Cash Flow 0:- 5000 1:900 2:2700 3:3900 4:1800 A 23 26.78 D 22

  • 1. Allen Inc., is considering a project with the following cash flows.   Year Cash Flows 0...

    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...

  • Question 7 5 pts Use the following after-tax cash flows for project A and B to...

    Question 7 5 pts Use the following after-tax cash flows for project A and B to answer the following question: (Numbers in parentheses are negative cash flows). These two projects are independent Year Cash Flow of A Cash Flow of B 0 ($2,400) ($4,500) 1 $999 $800 2 $950 $950 3 ($150) $950 $910 $800 5 $990 $900 6 ($500) $1980 What is the approximate payback of project B if the required rate of return is 10%? 4.56 years 6...

  • Geraldine Consultants, Inc. is considering a project that has the following cash flows: Year Cash Flow...

    Geraldine Consultants, Inc. is considering a project that has the following cash flows: Year Cash Flow 0 -$1,000 1 400 2 300 3 500 4 400 The company's WACC is 10%. What are the project's payback, internal rate of return, and net present value? Select one: a. Payback = 2.6, IRR = 21.22%, NPV = $300. b. Payback = 2.4, IRR = 21.22%, NPV = $260. c. Payback = 2.6, IRR = 24.12%, NPV = $300. d. Payback = 2.4,...

  • What is the IRR of the following set of cash flows?    Year Cash Flow 0...

    What is the IRR of the following set of cash flows?    Year Cash Flow 0 –$8,208             1 3,200             2 3,500             3 5,800             a. 21.72% b. 22.15% c. 20.63% d. 21.29% e. 22.81%

  • A project has the following cash flows:    Year Cash Flow 0 $64,200        1 –30,200...

    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

  • 16) You are offered an investment that will pay the following cash flows at the end...

    16) You are offered an investment that will pay the following cash flows at the end of each of the next five years at a cost of $800. What is the Net Present Value (NPV) if the required rate of return is 12% per year? Period Cash Flow 0 $0 1 $100 2 $200 3 $300 4 $400 5 $500 Remember that Excel’s NPV function doesn't really calculate the net present value. Instead, it simply calculates the present value of...

  • 1. Time Cash Flows 0 ($200,000) 1 0 2 0 3 0 4 0 5 0...

    1. Time Cash Flows 0 ($200,000) 1 0 2 0 3 0 4 0 5 0 6 0 7 0 8 0 9 0 10 $5,000,000 The internal rate of return of this cash flow stream is between 37% and 38%. True False 2. Time Cash Flows 0 ($100,000) 1 0 2 0 3 0 4 0 5 0 6 0 7 0 8 0 9 0 10 0 11 0 12 $400,000 The internal rate of return of this...

  • Alpha Enterprises, Inc. is considering a project that has the following cash flows: Year: Cash Flow;...

    Alpha Enterprises, Inc. is considering a project that has the following cash flows: Year: Cash Flow; 0: -$1,000 1: 500 2: 300 3: 900 4: 400 The company’s WACC is 10%. What is the project’s ordinary payback? Enter your answer rounded to two decimal places.

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT