principles of finance

A project has intial outlay of 4,000. It has a single payoff at the end of year 4 0f 6,9996.46. What is the internal rat of return for the project (round to the nearest %) need by tonight. Thank You

4000*(1+r)^4 = 6996.46
(I think you typed too many nines in 6,9996.46)
(1+r)^4 = 1.749119
1+r = 1.15002
r = 15.0 % annual rate of return

  1. 👍 0
  2. 👎 0
  3. 👁 181

Respond to this Question

First Name

Your Response

Similar Questions

  1. Finance

    Thomson Media is considering some new equipment whose data are shown below. The equipment has a 3 year tax life and would be fully depreciated by the straight line method over 3 years but it would have a positve pre-tax salvage

    asked by Nick on April 12, 2011
  2. math, depreciation

    A workcenter system purchased at a cost of $60,000 in 2015 has a scrap value of $12,000 at the end of 4 years. If the straight-line method of depreciation is used. a) find the rate of depreciation. b) Find the linear equation

    asked by lijm on September 3, 2019
  3. Finance

    Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.38 million. The fixed asset falls into the three-year MACRS class (MACRS schedule). The project is estimated

    asked by Lindsay on April 5, 2020
  4. finance

    It’s been two months since you took a position as an assistant financial analyst at Caledonia Products. Although your boss has been pleased with your work, he is still a bit hesitant about unleashing you without supervision.

    asked by mamey on May 4, 2014
  1. Finance

    Thomson Media is considering some new equipment whose data are shown below. The equipment has a 3 year tax life and would be fully depreciated by the straight line method over 3 years but it would have a positve pre-tax salvage

    asked by Nick on April 12, 2011
  2. financial management

    A capital project has an initial investment of $100,000 and cash flows in years 1-6 of $25,000, $10,000, $50,000, $10,000, $10,000, and $60,000, respectively. Given a 15 percent cost of capital, •(a) compute the net present

    asked by lori on April 14, 2014
  3. Finance

    Stone Inc. is evaluating a project with an initial cost of $8,450. Cash inflows are expected to be $1,000, $1,000 and $10,000 in the three years over which the project will produce cash flows. If the discount rate is 13%, what is

    asked by Anonymous on December 6, 2009
  4. Finance

    Consider the following projects, for a firm using a discount rate of 10%: project NPV IRR PI A $200,000 12.2% 1.04 B $200,001 11% 1.01 C $60,000 10.1% 1.61 D $(235,000) 9% .95 If the projects are independent, which, if any,

    asked by Kaylee on November 17, 2009
  1. Finance

    Fox Hollow Franks is looking at a new system with an installed cost of $540,000. This equipment is depreciated at a rate of 20 percent per year (Class 8) over the project’s five-year life, at the end of which the sausage system

    asked by Kathy on November 28, 2017
  2. Finance

    Capital Budgeting Problems I. Indigo Industrial, Inc. is trying to determine which, if any, of five different projects it should undertake. Indigo Industrial has a 8.25% required rate of return on projects that it undertakes. The

    asked by Jeremy on April 19, 2014
  3. finance

    Emma's Cabinets is looking at a project that will require $80,000 in fixed assets and another $20,000 in net working capital. The project is expected to produce annual sales of $110,000 with associated costs (other than

    asked by PMD on January 13, 2017
  4. Finance

    What's the net present value (NPV) of this replacement project? The old equipment has a book value of $200,000 (year 0) and a current salvage value of $300,000 (year 0). It is being depreciated on a straight-line basis. It has

    asked by Herb on April 11, 2010

You can view more similar questions or ask a new question.