Homework Answers
As per Decartes rule,
the total no. of real number roots is always 
the no. of sign changes in a series
We've to count the number of sign changes in the given data as per Descartes rule, to obtain the answer.
Therefore,
The number of possible rate of return solutions = Number of sign changes = 3
Answer is 3
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D Question 11 3 pts For the net cash flows shown in the table below, the...
Present value: Mixed streams Consider the mixed streams of cash flows shown in the following table....
Present value: Mixed streams Consider the mixed streams of cash flows shown in the following table. Cash flow stream Year $50,000 $10,000 20,000 30,000 30,000 20,00040,000 -50,000 Totals $50,000 $50,000 0 40,000 4 10,000 a. Find the present value of each stream using a 5% discount rate. b. Compare the calculated present values and discuss them in light of the undis- flows totaling $50,000 in each case. Is there some discount rate at counted cash which the present values of...
Suppose your firm is considering two mutually exclusive, required projects with the cash flows shown below....
Suppose your firm is considering two mutually exclusive, required projects with the cash flows shown below. The required rate of return on projects of both of their risk class is 8 percent, and that the maximum allowable payback and discounted payback statistic for the projects are 2 and 3 years, respectively. Time: 0 1 2 3 Project A Cash Flow -30,000 20,000 40,000 11,000 Project B Cash Flow -40,000 20,000 30,000 60,000 Use the NPV decision rule to evaluate these...
An internet company projects the following cash flows shown in the table below (in milions). Usin...
include cash flow diagram
An internet company projects the following cash flows shown in the table below (in milions). Using a Net Present Worth Balancing Equation and a manual iteration process compute the Rate of Return. Cash Flow (millions) 40 Year 0 1-3 4 -28 +15 +30 6-10
An internet company projects the following cash flows shown in the table below (in milions). Using a Net Present Worth Balancing Equation and a manual iteration process compute the Rate of Return....
6 Instructions Your manager wants you to evaluate two mutually exclusive projects. The cash flows of...
6 Instructions Your manager wants you to evaluate two mutually exclusive projects. The cash flows of the project is given in the flowing tables. 8 Project 1 $ uomi Cash flow (30,000) 8,000 10,000 11,000 17,000 12,000 + Onm Project 2 Cash flow $ (15,000) 2,000 5,000 7,000 2,000 25,000 20 The required rate of return is 15%. The first step is too evaluate the project using NPV, IRR, payback rule 21 You will do so in each tab named...
Compute the net present worth (NPW) of the cash flows described in table below for investment...
Compute the net present worth (NPW) of the cash flows described
in table below for investment being considered by MGM Industries in
Georgia. MARR =6%
Question 2 10 pts Compute the net present worth (NPW) of the cash flows described in table below for investment being considered by MGM Industries in Georgia. MARR-6% Year 1-10 11-15 16-25 26-30 Cash Flow -$200K10K 20K 5K 30K
Question 2 Determine the Rate of Return (%) for the cash flow shown below, if the...
Question 2 Determine the Rate of Return (%) for the cash flow shown below, if the MARR is 7%: Year Cash Flow -200,000 +50,000 +30,000 1-5 6-8 O 11% 13% less than 10% o over 15%
Short Answer Question 3: The daily net cash flows in the table below represent a 5-day...
Short Answer Question 3: The daily net cash flows in the table
below represent a 5-day sample. Use the Data Analysis tool in Excel
to calculate the 95% and 99% confidence intervals for the daily net
cash flows. Along with your calculation, interpret the meaning
behind your confidence interval estimates and discuss why the 99%
confidence interval is wider.
Day Net Cash Flow 1 15,000 2 17,000 13,000 3 4 20,000 5 14,000
Consider two investments A and B with the sequences of cash flows given in the table...
Consider two investments A and B with the sequences of cash flows given in the table below. Click the icon to view the cash flows for the projects. (a) Compute the IRR for each investment. The rate of return for Project A is %. (Round to one decimal place.) A More Info - X WN -o Net Cash Flow Project A - $115,000 30,000 30,000 120,000 Project B - $95,000 20,000 20,000 130,000
Bernie’s Restaurants is considering two mutually exclusive projects having the cash flow streams shown in the...
Bernie’s Restaurants is considering two mutually exclusive projects having the cash flow streams shown in the table below. Compute the net present value (NPV) for both projects using a 15% required rate of return. Compute the internal rate of return (IRR) for both projects. Compute the profitability index for both projects. Which project should Bernie’s business accept and why? Bernie’s Restaurants Capital Budgeting Projects Year Project A Net Cash Flow Project B Net Cash Flow 0 -$ 90,000 -$100,000 1...
Bernie’s Restaurants is considering two mutually exclusive projects having the cash flow streams shown in the...
Bernie’s Restaurants is considering two mutually exclusive projects having the cash flow streams shown in the table below. Compute the net present value (NPV) for both projects using a 15% required rate of return. Compute the internal rate of return (IRR) for both projects. Compute the profitability index for both projects. Which project should Bernie’s business accept and why? Bernie’s Restaurants Capital Budgeting Projects Year Project A Net Cash Flow Project B Net Cash Flow 0 -$ 90,000 -$100,000 1...
Present value: Mixed streams Consider the mixed streams of cash flows shown in the following table. Cash flow stream Year $50,000 $10,000 20,000 30,000 30,000 20,00040,000 -50,000 Totals $50,000 $50,000 0 40,000 4 10,000 a. Find the present value of each stream using a 5% discount rate. b. Compare the calculated present values and discuss them in light of the undis- flows totaling $50,000 in each case. Is there some discount rate at counted cash which the present values of...
include cash flow diagram
An internet company projects the following cash flows shown in the table below (in milions). Using a Net Present Worth Balancing Equation and a manual iteration process compute the Rate of Return. Cash Flow (millions) 40 Year 0 1-3 4 -28 +15 +30 6-10
An internet company projects the following cash flows shown in the table below (in milions). Using a Net Present Worth Balancing Equation and a manual iteration process compute the Rate of Return....
6 Instructions Your manager wants you to evaluate two mutually exclusive projects. The cash flows of the project is given in the flowing tables. 8 Project 1 $ uomi Cash flow (30,000) 8,000 10,000 11,000 17,000 12,000 + Onm Project 2 Cash flow $ (15,000) 2,000 5,000 7,000 2,000 25,000 20 The required rate of return is 15%. The first step is too evaluate the project using NPV, IRR, payback rule 21 You will do so in each tab named...
Compute the net present worth (NPW) of the cash flows described
in table below for investment being considered by MGM Industries in
Georgia. MARR =6%
Question 2 10 pts Compute the net present worth (NPW) of the cash flows described in table below for investment being considered by MGM Industries in Georgia. MARR-6% Year 1-10 11-15 16-25 26-30 Cash Flow -$200K10K 20K 5K 30K
Question 2 Determine the Rate of Return (%) for the cash flow shown below, if the MARR is 7%: Year Cash Flow -200,000 +50,000 +30,000 1-5 6-8 O 11% 13% less than 10% o over 15%
Short Answer Question 3: The daily net cash flows in the table
below represent a 5-day sample. Use the Data Analysis tool in Excel
to calculate the 95% and 99% confidence intervals for the daily net
cash flows. Along with your calculation, interpret the meaning
behind your confidence interval estimates and discuss why the 99%
confidence interval is wider.
Day Net Cash Flow 1 15,000 2 17,000 13,000 3 4 20,000 5 14,000
Consider two investments A and B with the sequences of cash flows given in the table below. Click the icon to view the cash flows for the projects. (a) Compute the IRR for each investment. The rate of return for Project A is %. (Round to one decimal place.) A More Info - X WN -o Net Cash Flow Project A - $115,000 30,000 30,000 120,000 Project B - $95,000 20,000 20,000 130,000
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