what is the irr of an investment that costs 200000 and has ocfs of 50000 a...
what is the irr of an investment that costs 200000 and has ocfs of 50000 a year for 2 years and 60,000 for the next three years?
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what is the irr of an investment that costs 200000 and has ocfs
of 50000 a...
Question text What is the IRR of an investment that costs $76,950 and pays $27,500 a...
Question text What is the IRR of an investment that costs $76,950 and pays $27,500 a year for four years? Select one: a. 22% b. 20% c. 16% d. 24% e. 18%
IN 5 6 7 8 9 10 -50000+ - 100000 - 150000 -200000 Discount Rate The...
IN 5 6 7 8 9 10 -50000+ - 100000 - 150000 -200000 Discount Rate The owner of a r salon spends $1,000,000 to renovat s premises estimating that will increase her show by 1220,000 per year. She constructe Alwaldscontrole does Per decision to renovate become untenatie? above graph which shows en presente (NPV)m a ction of the discoun OA. 48% OB 40% OC.3.3% OD 3.0% Use the information for the question(s) below. 150000 100000 50000 0 + AdN -50000...
What is the IRR for a project with an initial investment of $180,000 that provides an...
What is the IRR for a project with an initial investment of $180,000 that provides an annual cash inflow of $40,000 for the first three years and $25,000 per year for years four and five, and $50,000 per year for years six through eight? a.) 12.19% b.) 14.15% c.) 13.23% d.) 17.13%
Consider an investment that costs $100,000 and has a cash inflow of $25,000 every year for...
Consider an investment that costs $100,000 and has a cash inflow of $25,000 every year for 5 years. The required return is 9% and required payback is 4 years. What is the payback period? What is the NPV? What is the IRR? Can you step by step show me how to calculate the IRR? Should we accept the project? What decision rule should be the primary decision method? When is the IRR rule unreliable?
question #1 question #2 question #3 $4000000 2000000 100000 200000 50000 40000 Sales Less: Cost of...
question #1
question #2
question #3
$4000000 2000000 100000 200000 50000 40000 Sales Less: Cost of goods sold Gross Profit Less: Operating expenses Selling expenses General and administrative expenses Lease expenses Depreciation expenses Total operating expenses Operating profits Less: Interest expenses Net profit before taxes Less: Taxes (use table 3) Net profit after taxes Less: Preferred stock dividends Earnings available for common stockholders Earnings per share 100000 50000 Return on Assets (ROA) Return on Equity (ROE) Inventory Turnover Net profit...
Consider an investment that costs $110,000 and has a cash inflow of $25,000 every year for...
Consider an investment that costs $110,000 and has a cash inflow of $25,000 every year for 6 years. The required return is 7%, and required payback is 4 years. 1. What is the payback period? Should we accept the project? 2. What is the NPV? Should we accept the project? 3. What is the IRR? Should we accept the project? 4. What is the Profitability Index? Should we accept the project?
1. 2. (IRR calculation) Jella Cosmetics is considering a project that costs $725,000 and is expected...
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2.
(IRR calculation) Jella Cosmetics is considering a project that costs $725,000 and is expected to last for 9 years and produce future cash flows of $170,000 per year. If the appropriate discount rate for this project is 20 percent, what is the project's IRR? The project's IRR is %. (Round to two decimal places.) (Calculating IRR, payback, and a missing cash flow) The Merriweather Printing Company is trying to decide on the merits of constructing a new publishing...
Your firm is considering two mutually exclusive investment opportunities, investment A has an expected IRR of...
Your firm is considering two mutually exclusive investment opportunities, investment A has an expected IRR of 15%/year while investment B has an expected IRR of 12%/year, is it clear that investment A is better than investment B. Explain your reasoning.
Problems with IRR White Rock Services Inc. has an opportunity to make an investment with the...
Problems with IRR White Rock Services Inc. has an opportunity to make an investment with the following projected cash flows. Year Cash Flow 0 $1,680,000 1 -3,885,000 2 2,225,021 a. Calculate the NPV at the following discount rates and plot an NPV profile for this investment: 0%, 5%, 7.5%, 10%, 15%, 20%, 22.5%, 25%, 30%. b. What does the NPV profile tell you about this investment's IRR? c. If the company follows the IRR decision rule and their cost of...
Consider an investment that costs $420,000 and has a cash inflow of $130,000 every year for 5 years. The required r...
Consider an investment that costs $420,000 and has a cash inflow of $130,000 every year for 5 years. The required return is 8.5% and required payback is 4 years. What is the payback period? What is the NPV? What is the IRR (Note: Please complete this homework assignment on Excel and hand in the spreadsheet with your answers. Should we accept the project? Explain your reasons.
IN 5 6 7 8 9 10 -50000+ - 100000 - 150000 -200000 Discount Rate The owner of a r salon spends $1,000,000 to renovat s premises estimating that will increase her show by 1220,000 per year. She constructe Alwaldscontrole does Per decision to renovate become untenatie? above graph which shows en presente (NPV)m a ction of the discoun OA. 48% OB 40% OC.3.3% OD 3.0% Use the information for the question(s) below. 150000 100000 50000 0 + AdN -50000...
question #1
question #2
question #3
$4000000 2000000 100000 200000 50000 40000 Sales Less: Cost of goods sold Gross Profit Less: Operating expenses Selling expenses General and administrative expenses Lease expenses Depreciation expenses Total operating expenses Operating profits Less: Interest expenses Net profit before taxes Less: Taxes (use table 3) Net profit after taxes Less: Preferred stock dividends Earnings available for common stockholders Earnings per share 100000 50000 Return on Assets (ROA) Return on Equity (ROE) Inventory Turnover Net profit...
Consider an investment that costs $110,000 and has a cash inflow of $25,000 every year for 6 years. The required return is 7%, and required payback is 4 years. 1. What is the payback period? Should we accept the project? 2. What is the NPV? Should we accept the project? 3. What is the IRR? Should we accept the project? 4. What is the Profitability Index? Should we accept the project?
1.
2.
(IRR calculation) Jella Cosmetics is considering a project that costs $725,000 and is expected to last for 9 years and produce future cash flows of $170,000 per year. If the appropriate discount rate for this project is 20 percent, what is the project's IRR? The project's IRR is %. (Round to two decimal places.) (Calculating IRR, payback, and a missing cash flow) The Merriweather Printing Company is trying to decide on the merits of constructing a new publishing...
Consider an investment that costs $420,000 and has a cash inflow of $130,000 every year for 5 years. The required return is 8.5% and required payback is 4 years. What is the payback period? What is the NPV? What is the IRR (Note: Please complete this homework assignment on Excel and hand in the spreadsheet with your answers. Should we accept the project? Explain your reasons.
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