QUESTION 7
Consider the following cash flows:
Year | Cash Flow |
0 | -$10,000 |
1 | $1,000 |
2 | $2,000 |
3 | $3,000 |
4 | $4,000 |
5 | $5,000 |
Which equation would you use to compute the IRR?
1. |
-$10000 + $1000(P/G, i, 5) = 0 |
|
2. |
-$10,000 + $1,000 * (P/A, i, 5) + $1,000 * (P/G, i, 5) = 0 |
|
3. |
-$10,000 + $1,000 + $1,000 * (P/G,i,5) = 0 |
|
4. |
None of the above |
IRR is the rate at which NPV = 0
i.e. -10,000 + 1,000*PVF(i, 1)+2,000*PVF(i,2) + 3000*PVF(i, 3)+4000*PVF(i,4) + 5000*PVF(i,5) = 0
Hence, the answer is 4.None of the above
QUESTION 7 Consider the following cash flows: Year Cash Flow 0 -$10,000 1 $1,000 2 $2,000...
Find the IRR of the following cash flows: Year Cash Flow 0 $-2,500 1 $1,100 2 $2,500 3 $1,000 4 $3,000 Enter your answer as a percentage rounded to two decimal places (e.g., 5.64%).
1) (12 pts) The following is a cash flow diagram: Cash Flows: 20000 10000 Cash Flow $35,000 $5,000 $7,500 $1000 $10,000 $5,000 Year 0 1 2 4 >-10000 -20000 30000 40000 Years 4 Annual Interest rate = 10%, compounded annually a) Calculate the Present wortlh b) Calculate the equivalent annuity for these cash flows c) Calculate the future worth of these cash flows at 5 years
Calculate the payback period for a project that has the following cash flows? The required return is 12.0%. Year Cash Flow 0 $ (12,000) 1 $ 1,000 2 $ 2,000 3 $ 3,000 4 $ 4,000 5 $ 5,000 6 $ 6,000 2.25 years 3.25 years 3.85 years 4.40 years None of these are correct.
Calculate the payback period for a project that has the following cash flows? The required return is 12.0%. Year Cash Flow 0 $ (12,000) 1 $ 1,000 2 $ 2,000 3 $ 3,000 4 $ 4,000 5 $ 5,000 6 $ 6,000 Group of answer choices 2.25 years 3.85 years 3.25 years 4.40 years None of these are correct.
Calculate the payback period for a project that has the following cash flows? The required return is 12.0%. Year Cash Flow 0 $ (12,000) 1 $ 6,000 2 $ 5,000 3 $ 4,000 4 $ 3,000 5 $ 2,000 6 $ 1,000 Group of answer choices 2.25 years None of these are correct. 3.25 years 4.40 years 3.85 years
Problem 2 . Consider the cash flow . Project Cash Flows series given for an investment project. Determine the project balances over the life of the project at an interest rate of 12%. End of Year Cash Flow $3,000 -$1,500 $4,000 $3,000 $5,000 0 4
10. Two investments have the same expected returns: Year BTCF1 BTCF2 1 $5,000 $2,000 2 10,000 $4,000 3 12,000 $1,000 4 15,000 $5,000 Sale $120,000 $180,000 Investment 1 requires an out lay of $110,000 and investment 2 requires an outlay of $120,000. a. What is the before tax IRR on each investment? b. If the before tax IRR were partitioned based on the cash flow from operations and the cash flow from the sale, what would be the before tax...
5 pts Question 18 An investment promises the following cash flow stream: $1,000 at Time 0; $2,000 at the end of Year 1 (or att = 1); $3,000 at the end of Year 2:; and $5,000 at the end of Year 3. At a discount rate of 6.5 %, what is the present value of the cash flow stream? Your answer should be between 8343.00 and 11,000.00, rounded to 2 decimal places, with no special characters Question 19 5 pts...
What is the net present value (NPV) of a project that has the following cash flows? The required return is 10.0%. Year 0 1 2 3 Cash Flow $(5,000) $2,000 $2,000 $2,000 $3,000 $ 1,000 $1,000 4 5 6 O $2,920 O None of these are correct. O $2,916 O $2,655 $ 3,208
Consider the following cash flows: Year Cash Flow 0 –$ 34,000 1 13,600 2 18,100 3 11,000 What is the IRR of the above set of cash flows? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Internal rate of return _____%?