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. 👍
  2. 👎
  3. 👁

Respond to this Question

First Name

Your Response

Similar Questions

  1. Corprate Finance

    An initial investment of $400,000 will produce an end of year cash flow of $480,000. What is the NPV of the project at a discount rate of 20%?

  2. accounting

    Financial Statement Analysis Portfolio The Income Statement for Pumpkin Co. is shown below: Pumpkin Co. Income Statement for the Month Ended October 21, 2010 revenues sales $120,000.00 operating expenses salary expense $10,000.00

  3. accounting

    PLEASE HELPP!! Financial Statement Analysis Portfolio The Income Statement for Pumpkin Co. is shown below: Pumpkin Co.IncomeStatement for the Month Ended October 21, 2010 revenues- blank sales $120,000.00 operating expenses-blank

  4. stats: need help please

    4.34 Keno is a favorite game in casinos, and similar games are popular with the states that operate lotteries. Balls numbered 1 to 80 are tumbled in a machine as the bets are placed, then 20 of the balls are chosen at random.

  1. 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

  2. Math

    Richard purchased a car for $39,905. He made a downpayment of $15,000 and paid $614 monthly for 4 years. Find the APR. Richard was able to payoff the loan at the end of 30 months. Using the Actuarial method find he unearned

  3. 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,

  4. finance

    Carlyle Inc. is considering two mutually exclusive projects. Both require an initial investment of $15,000 at t = 0. Project S has an expected life of 2 years with after-tax cash inflows of $7,000 and $12,000 at the end of Years 1

  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

  2. Managerial Finance

    Jefferson Products, Inc., is considering purchasing a new automatic press break, which costs $300,000 including installation and shipping. The machine is expected to generate net cash inflows of $80,000 per year for 10 years. At

  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

  4. 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

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