![Problem 7-63] If 8% is considered the minimum attractive rate of return, which alternative should be selected using an increm](http://img.homeworklib.com/questions/7956b4e0-21fd-11ea-af9a-75a18847332b.png?x-oss-process=image/resize,w_560)
Please show how the IRR formula is done. Thank you!
Homework Answers
Using IRR function in Excel
| Year | X | Y | X-Y |
| 0 | -5000.00 | -5000 | 0.00 |
| 1 | -3000.00 | 2000 | -5000.00 |
| 2 | 4000.00 | 2000 | 2000.00 |
| 3 | 4000.00 | 2000 | 2000.00 |
| 4 | 4000.00 | 2000 | 2000.00 |
| IRR | 16.94% | 21.86% | 9.70% |
As the incremental IRR of (X-Y) is greater than MARR of 8%, option X should be selected
Showing formula in Excel
| Year | X | Y | X-Y |
| 0 | -5000 | -5000 | =J2-K2 |
| 1 | -3000 | 2000 | =J3-K3 |
| 2 | 4000 | 2000 | =J4-K4 |
| 3 | 4000 | 2000 | =J5-K5 |
| 4 | 4000 | 2000 | =J6-K6 |
| IRR | =IRR(J2:J6) | =IRR(K2:K6) | =IRR(L2:L6) |
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Please show how the IRR formula is done. Thank you! Problem 7-63] If 8% is considered the minimum attractive rate of re...
Please show all of your work! Thank you [Problem 7-63] If 8% is considered the minimum attractive rate of return, which...
Please show all of your work! Thank you
[Problem 7-63] If 8% is considered the minimum attractive rate of return, which alternative should be selected using an incremental analysis? Year 0 1 х -$5000 -3000 4000 4000 4000 -$5000 2000 2000 2000 2000
2. [Problem 7-63] If 8% is considered the minimum attractive rate of return, which alternative should...
2. [Problem 7-63] If 8% is considered the minimum attractive rate of return, which alternative should be selected using an incremental analysis? Year -$5000 -3000 4000 4000 4000 -$5000 2000 2000 2000 2000 3. [Problem 8-5] A stockbroker has proposed two investments in low-rated corporate bonds paying high interest rates and selling at steep discounts (junk bond). The bonds are rated as equally risky and both mature in 15 years. Bond Stated Value Annual Interest Payment $67 Current Market Price...
For the cash flows below, if 6% is the minimum attractive rate of return, which alternative...
For the cash flows below, if 6% is the minimum attractive rate of return, which alternative should be selected? Use rate of return analysis. alternative 1 alternative 2 Year 0 -$5000 -$5000 -3000 2000 4000 2000 2000 4000 4000 2000
1. Given the costs and benefits of two water pumps, what is the rate of return on the difference ...
1. Given the costs and benefits of two water pumps, what is the rate of return on the difference of these alternatives? Year -$3000 +800 +800 +800 +800 +800 -$3800 +1200 +1200 +1200 +1200 +1200 What is your choice of these 2 alternatives and why? 2. The manager of a local restaurant is trying to decide whether to buy a charcoal broiling unit or an electric grill for cooking hamburgers. A market study shows customers prefer charcoal broiling but the...
please help! thank you!! (sorry for so many pictures. this is the only way i could...
please help! thank you!!
(sorry for so many pictures. this is the only way i could take
them without them being blurry)
Problem 6-06 Klein Chemicals, Inc., produces a special oil-based material that is currently in short supply. Four of Klein's customers have already placed orders that together exceed the combined capacity of Klein's two plants. Klein's management faces the problem of deciding how many units it should supply to each customer. Because the four customers are in different industries,...
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Please, show the formulas and
step by step on how to find the answer!!
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Please write neatly. DO NOT USE EXCEL! Thank you. Question #4 (25 Points) Three alternatives are...
Please write neatly. DO NOT USE EXCEL! Thank
you.
Question #4 (25 Points) Three alternatives are being considered. The table below shows the associated cash flows with each alternative The company uses MARR of 20% per year Alternative A $40,000 $38,000 $25,000 $10,000 6 vears 26% Alternative BAlternative C Capital investment Annual Revenu Annual Cost Salvage value Useful life IRR $60,000 $53,000 $30,000 $10,000 6 years 3390 $30,000 $28,000 $16,000 $10,000 6 vears 35% Using incremental analysis, determine which is...
Please, show the formulas and step by step on how to find the answer!! Consider the...
Please, show the formulas and
step by step on how to find the answer!!
Consider the following two alternatives: Year A 0 -$2,000 +$800 +$800 3 +$800 B $2,800 +$1,100 +$1,100 +$1,100 2 If the minimum attractive rate of return is 5%, which alternative should be selected?
Please show the steps and which answer is NPV and IRR Thank you! Problem 10-36 Project...
Please show the steps and which answer is NPV and IRR Thank
you!
Problem 10-36 Project Evaluation (LO1) Aria Acoustics, Inc. (AAI), projects unit sales for a new seven-octave voice emulation implant as follows: Year 10 points Unit Sales 73,800 86,800 106,000 98,200 67,700 8 02:17:26 Mtu Production of the implants will require $1,700,000 in net working capital to start and additional net working capital investments each year equal to 10 percent of the projected sales increase for the following...
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Please show all the steps you've done to reach the final answer. I am trying to learn, so please show your work. Typing your answer is important. 1) A metal plating company is considering four different methods for recovering by-product heavy metals from a manufacturing site’s liquid waste. The investment costs and annual net incomes associated with each method have been estimated. All methods have an 8-year life; the MARR is 11% per year, and an AW-based ROR analysis is...
Please show all of your work! Thank you
[Problem 7-63] If 8% is considered the minimum attractive rate of return, which alternative should be selected using an incremental analysis? Year 0 1 х -$5000 -3000 4000 4000 4000 -$5000 2000 2000 2000 2000
2. [Problem 7-63] If 8% is considered the minimum attractive rate of return, which alternative should be selected using an incremental analysis? Year -$5000 -3000 4000 4000 4000 -$5000 2000 2000 2000 2000 3. [Problem 8-5] A stockbroker has proposed two investments in low-rated corporate bonds paying high interest rates and selling at steep discounts (junk bond). The bonds are rated as equally risky and both mature in 15 years. Bond Stated Value Annual Interest Payment $67 Current Market Price...
For the cash flows below, if 6% is the minimum attractive rate of return, which alternative should be selected? Use rate of return analysis. alternative 1 alternative 2 Year 0 -$5000 -$5000 -3000 2000 4000 2000 2000 4000 4000 2000
1. Given the costs and benefits of two water pumps, what is the rate of return on the difference of these alternatives? Year -$3000 +800 +800 +800 +800 +800 -$3800 +1200 +1200 +1200 +1200 +1200 What is your choice of these 2 alternatives and why? 2. The manager of a local restaurant is trying to decide whether to buy a charcoal broiling unit or an electric grill for cooking hamburgers. A market study shows customers prefer charcoal broiling but the...
please help! thank you!!
(sorry for so many pictures. this is the only way i could take
them without them being blurry)
Problem 6-06 Klein Chemicals, Inc., produces a special oil-based material that is currently in short supply. Four of Klein's customers have already placed orders that together exceed the combined capacity of Klein's two plants. Klein's management faces the problem of deciding how many units it should supply to each customer. Because the four customers are in different industries,...
Please, show the formulas and
step by step on how to find the answer!!
Two mutually exclusive alternatives of A and B have both useful lives of 5 years. For Alternative A, there is an initial cost of $2,500 and annual benefits of $746. For Alternative B, there is an initial cost of $6,000 and annual benefits of $1,664. By following each of the following methods, define which alternative should be chosen? (30 pts) i. Annual Cash Flow Analysis (the...
Please write neatly. DO NOT USE EXCEL! Thank
you.
Question #4 (25 Points) Three alternatives are being considered. The table below shows the associated cash flows with each alternative The company uses MARR of 20% per year Alternative A $40,000 $38,000 $25,000 $10,000 6 vears 26% Alternative BAlternative C Capital investment Annual Revenu Annual Cost Salvage value Useful life IRR $60,000 $53,000 $30,000 $10,000 6 years 3390 $30,000 $28,000 $16,000 $10,000 6 vears 35% Using incremental analysis, determine which is...
Please, show the formulas and
step by step on how to find the answer!!
Consider the following two alternatives: Year A 0 -$2,000 +$800 +$800 3 +$800 B $2,800 +$1,100 +$1,100 +$1,100 2 If the minimum attractive rate of return is 5%, which alternative should be selected?
Please show the steps and which answer is NPV and IRR Thank
you!
Problem 10-36 Project Evaluation (LO1) Aria Acoustics, Inc. (AAI), projects unit sales for a new seven-octave voice emulation implant as follows: Year 10 points Unit Sales 73,800 86,800 106,000 98,200 67,700 8 02:17:26 Mtu Production of the implants will require $1,700,000 in net working capital to start and additional net working capital investments each year equal to 10 percent of the projected sales increase for the following...
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