A project has the following cash flows. What is the internal rate of return?

68,843 results

Math

Internal rate of return What is the internal rate of return for the following project. An initial outlay of $9500 resulting in a single cash inflow of $16,281 in 7 years. Internal rate of return for the project is ___%

Math

Sorry I wasn't finished with the problem. Fijisawa Inc. is considering a major expansion of its product line and has estimated the following cash flows associated with such an expansion. The initial outlay would be $1,980,000, and the project would generate incremental free ...

Finance

Anderson International Limited is evaluating a project in Erewhon. The project will create the following cash flows: Year Cash Flow 0 –$690,000 1 243,000 2 175,000 3 256,000 4 231,000 All cash flows will occur in Erewhon and are expressed in dollars. In an attempt to improve...

finance

A project has the following cash flows. What is the internal rate of return? Year 0 cash flow -$443,600 1 $224,800 2 $224,800 3 $ 67,200

finance

13. A project has the following cash flows. What is the internal rate of return? Year 0 cash flow -$443,600 1 $224,800 2 $224,800 3 $ 67,200 (Please calculate the solution and show your work)

Finance math

Consider the project with the following expected cash flows: Year Cash flow 0 -$400,000 1 $100,000 2 $120,000 3 $850,000 •If the discount rate is 0%, what is the project's net present value? •If the discount rate is 2%, what is the project's net present value? •If the ...

roosevelt university

Preston Corporation is evaluating its potential investment in a $225,660 piece of equipment with a three-year life and no salvage value. The company anticipates that pre-tax cash flows in each of the three years will equal to 22%, 44%, and 66%, respectively, of the investment...

Finance

Your firm is looking at a new investment opportunity, Project Alpha, with net cash flows as follows: ---- Net Cash Flows ---- Project Alpha Initial Cost at T-0 (Now) ($10,000) cash inflow at the end of year 1 6,000 cash inflow at the end of year 2 4,000 cash inflow at the end ...

Math

Fijisawa Inc. is considering a major expansion of its product line and has estimated the following cash flows associated with such an expansion. The initial outlay would be $1,980,000, and the project would generate incremental free cash flows of $490,000 per year for 6 years...

Business finance

Question No 1: Sumi Inc. has policy of paying a Rs. 9 per share dividend every year. If this policy is to continue indefinitely, what will be the value of a share of stock at a 12% required rate of return? Rs. 30 Rs. 45 Rs. 60 Rs. 75 Question No: 2 The XYZ Corporation is ...

FIN

A project has the following initial outlay of 11,500 resulting in a single cash flow if 23,876 in 7 years. What is the internal rate of return?

Math - NPV & IRR

East Coast Television is considering a project with an initial outlay of $X ( you will have to determine this amount) It is expected that the project will produce a positive cash flow of $60,000 a year at the end of each year for the next 16 years. The appropriate discount ...

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 value. . •(b) compute the internal rate of return...

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 the end of 10 years, the book value of the ...

Financial Management

In using the internal rate of return method, it is assumed that cash flows can be reinvested at

accounting

. Preference Decisions: NPV vs. IRR vs. Profitability Index Stephens Industries is contemplating four projects: Project P, Project Q, Project R, and Project S. The capital costs and estimated after- tax net cash flows of each project are shown in the table that follows. ...

Finance

Cash flows will be $27.7 million, all coming at the end of one year. The land must be returned to its natural state at a cost of $25 million, payable after two years. Compute the IRR for this project. Should the project be accepted if required rate of return is 8 percent? ...

Finance

If depreciation is not a cash flow item, why does it affect the level of cash flows from a project in any way? Why are we interested only in incremental cash flows rather than total cash flows?

finance

All techniques with NPV profile- mutually exclusive projects. Projects A and B, of equal risk. Are alternatives for expanding Rosa Company’s capacity. The firm’s cost of capital is 13%. The cash flows for each project are shown in the following table. a. Calculate each ...

financ

All techniques with NPV profile- mutually exclusive projects. Projects A and B, of equal risk. Are alternatives for expanding Rosa Company’s capacity. The firm’s cost of capital is 13%. The cash flows for each project are shown in the following table. a. Calculate each ...

Math

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 projected cash flows for each of the projects are given in the table below: ...

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 projected cash flows for each of the projects ...

finace

Find the IRR and MIRR of a project if it has estimated cash flows of $5,500 annually for seven years if its year-zero investment is $25,000 and the firm's minimum required rate of return on the project is 10 percent.

finance

Find the IRR and MIRR of a project if it has estimated cash flows of $5,500 annually for seven years if its year-zero investment is $25,000 and the firm’s minimum required rate of return on the project is 10 percent

Finance

A U.S.-based firm is planning to make an investment in Europe. The firm estimates that the project will generate cash flows of 200,000 euros after one year. If the one-year forward exchange rate is $1.40/euro and the dollar cost of capital is 9%, what is the present value (PV...

Finance/370

How do i deteremine the internal rate of return of a problem. Lets say a company is justt starting and they need an initial outlay of $105,000 and will generate a net cash inflows of 19,000 per year for 9 years. A) If the discount rate is 8 % then what is the NPR? (I ...

economics

Consider a project with a positive rate of return. Suppose the discount factor solutions to the equation which determines the internal rate of return (ROR) of the project are given by 0.8502, 2.0207, -0.1767. What is the project's ROR?

financial management

1)The cost of a project is $500,000 and the present value of the net cash inflows is $625,000. What is the increase in value of the firm as a result of accepting the project.2)A project has an initial outlay of $100,000, a cash inflow of $133,000 at the end of three years, and...

financial mgmt

Suppose a project has a $2,000,000 net investment and net cash flows (NCFs) of $700,000 annually for 7 years. If the investor's required rate of return is 10%, what is the NPV of this project?

financial management

Given below are the cash flows of a project. Find out the net present value of the project. Cost of capital is 18% and initial investment is Rs. 2,00,000. Year Cash Flows (lakhs) 1. 40 2. 45 3. 60 4. 60 5. 75

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 the net present value of the project?

Finance

Wheel Industries is considering a three year expansion project. The project requires an initial investment of $1.5 million. The project will use straight line depreciation method. The project has no salvage value. It is estimated that the project will generate additional ...

Project Selection

If cost and rate of return were the only determining factors in the selection of a project, which one would you agree is the best selection? Scoring model: project 1: Score = 22 project 2: Score = 28 NPV analysis: project 1: $60,995 project 2: $25,695 Based on the following: 1...

FINANCE

Tim recently invested $3,500 in a project that is promising to return 10.75 percent per year. The cash flows are expected to be as follows: End of Cash Year Flow 1 $750 2 800 3 ??? 4 950 Note that the 3rd year cash flow is unknown. Assuming the present value of this cash flow ...

finance

John Keene recently invested $3,500 in a project that is promising to return 10.75 percent per year. The cash flows are expected to be as follows: End of Cash Year Flow 1 $750 2 800 3 ??? 4 950 Note that the 3rd year cash flow is unknown. Assuming the present value of this ...

accounting

Salt River Copmany is evaluating a capital expenditure propsal that has the following predicted cash flows: Intial investment $(43,270) Operation Year 1 20,000 Year 2 30,000 Year 3 10,000 Salvage 0 a. Using a discount rate of 14 percent, determine the net present value of the ...

accounting

Salt River Copmany is evaluating a capital expenditure propsal that has the following predicted cash flows: Intial investment $(43,270) Operation Year 1 20,000 Year 2 30,000 Year 3 10,000 Salvage 0 a. Using a discount rate of 14 percent, determine the net present value of the ...

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...

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. Your next assignment involves both the calculation...

Finance

Walmart wishes to determine the rate of return of an investment made four years ago for $25 000 and currently has a market value of $31 500. During the current year the investment generated cash flows of $1000. Required: What is the rate of return on the investment?

finance

The Wet Corp. has an investment project that will produce cash flows of $20,000 per year for three years. Assume the only expense is depreciation on the asset purchased and this will be $5,000 per year. The company's tax rate is 34%. What is the cash flow from the project in ...

Accounting

1. Complete Problem 14.1 on page 279 of the course text (solution is on page 501-502). Next, work the problem again using the following variables: project yield annual net cash inflows are $10,500 for the next five years; interest rate of 16.5%, and the initial investment of $...

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. Your next assignment involves both the calculation...

Investing ( pease help)

Maxwell Feed & Seed is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's projected IRR can be less than the WACC (and even negative), in which case it will be rejected. WACC 10.00% Year 0 1 2 3 4 5 Cash flows -$9,000...

corporate financial

check my answer if answer is diffferent show how you got it 1. Firm A uses straight-line depreciation. Firm B uses MACRS depreciation. Both firms bought $100,000 worth of equipment two years ago. The equipment has a 7-year life. Both firms are in the 34 percent tax bracket. ...

finance

The required investment is $1 million, and anticipated year-end cash flows are as follows: Year 1 2 3 4 Cash flow $300,000 $400,000 $500,000 $200,000 Compute the net present value rate of return using a 10 percent required return. What should be decision rule in this example.

Fancial management

Submit your work via My Assignments. 1. Bob’s Country Bunker (BCB), a chain of economically priced motels in the Midwestern United States has reviewed its current target structure of 40% debt and 60% equity. It can issue debt at a rate of 9%. The last dividend paid on its ...

Corporate Finance

1. The Federal Reserve recently shifted its monetary policy, causing Lasik Vision's WACC to change. Lasik had recently analyzed the project whose cash flows are shown below. However, the CFO wants to reconsider this and all other proposed projects in view of the Fed action. ...

Accounting

Brodigan Corporation has provided the following information concerning a capital budgeting project: Investment required in equipment $450,000 Net annual operating cash inflow $220,000 Tax rate 30% After-tax discount rate 12% The expected life of the project and the equipment ...

Finance

what is the initial rate of return for the following project: An initial outlay of 9,500 resulting in a single cash flow of 16,281 in 7 years

Finance

Imagine the CFO of a company has asked you, the auditor, to review the internal controls for cash receipts and to evaluate its cash management of accounts. Prepare a one page letter to the CFO addressing the following questions: 1. Why are internal controls for cash important ...

finance

Explain in detail on how does the modified internal rate of return include concepts from both the traditional internal rate of return and the net present value methods? Use a quantitative example to present for your answer.

Finance / Business

Can you please tell me if I am right on this? I believe the answer is c. $4,264. A project has an initial outflow of $10,000. The project will generate free cash flows of $8,000 per year for two years. The discount rate is 8%. What is this project’s net present value (NPV)? ...

Finance

what is the internal rate of return for an initial outlay of $10,500 resulting in a single cash inflow of $19,932 in 11 years?

homework

Ms. Brown estimates the following cash flow for the first five years of operations, with cash flow leveling off in year 5. Year Cash flow Year 1 $695,000 Year 2= 876,250 Year 3= 1,057,500 Year 4= 1,238,750 Year 5= 1, 420,000 Calculate the IRR and NPV of this project utliizing ...

Financial management

evaluates investment opportunities using payback. The finance director who has been with the company since its formation in 1975, has recently heard that this method may not be the best for evaluating long term projects. You have been brought in to advise the company and have ...

college

You're thinking of investing in a automation project to reduce cost of production. -Investment in Fixed Assets: $900,000 at t=0; salvage value of $300,000 at t=6; straight line deprectiation over 6 years (assume book value is 0 at t=6) -Investement in NWC: $250,000 at t=0; no ...

Finance

10. A new factory at Arcata requires an initial outlay of $3.5 million to be paid immediately. The factory will last for eight additional years, after which it can be sold for a salvage value of $2,000,000. Sales will be $800,000 during the first year of operation and will ...

Corporate Finance

1. TexMex Products is considering a new salsa whose data are shown below. The equipment that would be used would be depreciated by the straight-line method over its 3-year life, would have zero salvage value, and no new working capital would be required. Revenues and other ...

busn

Which one of the following activities best exemplify working capital management. For this exercise you will be choosing more than one option for your answer. 1. Identify three good investment opportunities for the firm. 2. Obtain a short-term loan to purchase materials. 3. ...

Finance

an initial outlay of $10000 resulting in a free cash flow of $1993 at end of each year for the next 10 years. the internal rate of return?

Finance

You are evaluating a proposed expansion of an existing subsidiary located in Switzerland. The cost of the expansion would be SF 32.4 million. The cash flows from the project would be SF 9 million per year for the next five years. The dollar required return is 15 percent per ...

Finance

a share of preferred stock of MXT LTD. is expected to pay 1.0 per quarter into indefinite future. the current required annual expected rate of return, k, is 8%. suppose that an investor buys 10 shares today and wants to hold these shares for the next 2 years. find his/her cash...

Finance:capital budget

I am suppose to write a 1400 word paper based on the purchase of three new trucks costing $30,000 each and $10,000 of equipment for each one, with the life expansion of the trucks to be 5 years by calculating the firms' required return using the capital asset pricing model and...

Financial management

Im having a little trouble can someone please help me. Im not sure if my answers were right or what the rest would be. 1. _________C__________ is the interest rate in which NPV equals zero. a. Required Rate of Return b. Annual percentage rate (APR) c. Internal Rate of Return d...

managerial accounting

The building and equipment are estimated to cost $1,100,000 (ignore depreciation). The building and equipment have zero estimated residual value at the end of 10 years. Munster’s required rate of return for this project is 12 percent. Net Cash Flow related to each year of ...

finance

I'm having a terrible time understanding how to estimate cash flow. My book only provides one example, and it's long and drawn out. The question I'm working on is this: A project that is expected to last six years will generate a profit and cash flow contribution before taxes ...

Finance

Veggie Burgers, Inc., would like to maintain its cash account at a minimum level of $246,400; but expect the standard deviation in net daily cash flows to be $13,600; the effective annual rate on marketable securities to be 4.8 percent per year; and the trading cost per sale ...

business math

I need help with my economics with calculating the NPV of the cash flows expected in 2006-2010 using only the 2005 Cost of Capital (don’t worry about increasing costs of capital). Calculate the NPV of the cash flows using the CASH FLOW figures at the bottom of the ...

Finance

20. TexMex Products is considering a new salsa whose data are shown below. The equipment that would be used would be depreciated by the straight-line method over its 3-year life, would have zero salvage value, and no new working capital would be required. Revenues and other ...

Managerial Accounting

IRR: Even Cash Flows Williams and Park Accounting Practice is considering investing in a new computer system that costs $9,000 and would reduce processing costs by $2,000 a year for the next six years. Required: Calculate the internal rate of return, using the time value of ...

Managerial Accounting

IRR: Even Cash Flows Williams and Park Accounting Practice is considering investing in a new computer system that costs $9,000 and would reduce processing costs by $2,000 a year for the next six years. Required: Calculate the internal rate of return, using the time value of ...

Managerial Accounting

IRR: Even Cash Flows Williams and Park Accounting Practice is considering investing in a new computer system that costs $9,000 and would reduce processing costs by $2,000 a year for the next six years. Required: Calculate the internal rate of return, using the time value of ...

Math

Using the following cash flows for projects A and B, use payback period, discounted payback period, NPV, IRR, and MIRR to see if these are good projects or not. > Project A: (283,000); 46,000; 89,000; 104,000; 123,000; 187,000; and 72,000 > Project B: (318,000); 72,000; ...

Financial

Cochrane, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $1,860,000. The fixed asset falls into the three-year MACRS class (MACRS Table). The project is estimated to generate $1,950,000 in annual sales, with costs of...

accounting 2

a.Equipment and land were acquired for cash b.There were no disposal of equipment during the year c.The investments were sold for 45,000 cash d.The common stock was issued for cash e.There was a 65,900 credit to retained earning for net income f.There was a 50,000 debit to ...

Finance ( Need help )

TexMex Food Company is considering a new salsa whose data are shown below. The equipment to be used would be depreciated by the straight-line method over its 3-year life and would have a zero salvage value, and no new working capital would be required. Revenues and other ...

accounting 2 urgent please help

part 2 thank you Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities a.Equipment and land were acquired for cash b.There were no disposal of equipment during the year c.The investments were sold for 45,000 cash d.The ...

Finance ( Please help)

Warnock Inc is considering a project that has the following cash flow and WACC Data What is the projects NPV ?note THAT a projects NPV Can be negative in which case it will be rejected . WACC 10.00% year 0 1 2 3 Cash Flows -825 500 400 300 I get C but i am having doubts about ...

economics

how can I do this question on a TI83? . If the interest rate is 10% and cash flows are $1,000 at the end of year one and $2,000 at the end of year two, then the present value of these cash flows is

College math HELP!!!!!

A financier plans to invest up to $450,000 in two projects. Project A yields a return of 10% on the investment, whereas Project B yields a return of 15% on the investment. Because the investment in Project B is riskier than the investment in Project A, the financier has ...

Financial Analysis - free cash flows

b. Do negative values of free cash flow in way alter or invalidate the notion that a company's fair market value equals the present value of its free cash flows discounted at the company’s weighted average cost of capital? Suppose a company's free cash flows were expected to...

Finance

Handy Enterprises has gathered projected cash flows for two projects. Year Project I Project J 0 –$215,000 –$215,000 1 104,000 75,000 2 93,000 86,000 3 79,000 96,000 4 72,000 105,000 Requirement 1: At what interest rate would the company be indifferent between the two ...

Finance

Handy Enterprises has gathered projected cash flows for two projects. Year Project I Project J 0 –$215,000 –$215,000 1 104,000 75,000 2 93,000 86,000 3 79,000 96,000 4 72,000 105,000 Requirement 1: At what interest rate would the company be indifferent between the two ...

finance

What is the payback period of the following project? Initial Investment: $50,000 Projected life: 8 years Net cash flows each year: $10,000

Finance/571

Trigen Corp. management will invest cash flows of $1,206,765, $1,085,603, $602,301, $818,400, $1,239,644, and $1,617,848 in research and development over the next six years. If the appropriate interest rate is 9.14 percent, what is the future value of these investment cash ...

Finance

We are considering the introduction of a new product. Currently we are in the 34% tax bracket with a 15% discount rate. This project is expected to last five years and then, because this is somewhat of a fad project, it will be terminated. The following information describes ...

Finance

Thompson Stores is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's projected IRR can be less than the WACC (and even negative), in which case it will be rejected. Year Cash Flow 0 ($1,000) 1 $300 2 $295 3 $290 4 $...

finance

Sunshine Corporation is considering several long-term investments. Management wants to accept the two best projects, given the following data: Project A B C D E Present value of net cash inflows . . . . . . . . $24,000 $44,000 $15,000 $30,000 $50,000 Investment cost...

Financial Management

Company Information Wheel Industries is considering a three-year expansion project, Project A. The project requires an initial investment of $1.5 million. The project will use the straight-line depreciation method. The project has no salvage value. It is estimated that the ...

business

A company is considering a $250 million investment in land that it will hold for 25 years. The pretax net cash flows are $40 million per year and land prices are expected to rise at a rate of 7% per year. The opportunity cost of capital is 13%, inflation is 2% and tax rate is ...

Finance

What are the differences between the cash flows to a bond and the cash flows to preferreds?

corporate finance

A company is considering a $250 million investment in land that it will hold for 25 years. The pretax net cash flows are $40 million per year and land prices are expected to rise at a rate of 7% per year. The opportunity cost of capital is 13%, inflation is 2% and tax rate is ...

math

A financier plans to invest up to $500,000 in two projects. Project A yields a return of 8% on the investment of x dollars, whereas Project B yields a return of 13% on the investment of y dollars. Because the investment in Project B is riskier than the investment in Project A...

math

A financier plans to invest up to $500,000 in two projects. Project A yields a return of 8% on the investment of x dollars, whereas Project B yields a return of 13% on the investment of y dollars. Because the investment in Project B is riskier than the investment in Project A...

Accounting

Use the following information to answer questions 8-10. The Boxcar Corporation has paid a total of $1 million in cash bonuses to its officers for 8 consecutive years. The board’s policy requires that, for this bonus to be paid, net cash provided by operating activities ...

Probability and Linear Math

SET UP BUT DO NOT SOLVE THE FOLLOWING LINEAR PROGRAMMING PROBLEM. A financier plans to invest up to $500,000 in two products. Project A yields a return of 10% on an investment, whereas Project B yields a return of 15% on the investment. Because the investment in Project B is ...

Finance

A proposed project has expected cash flows of $72,000 per year for 5 years. If the project has an initial cost of $400,000, what is the payback period (in years)?

Finance

Briefly discuss the concept of relevant cash flows when evaluating a new project

Cash Flow

A project lasted several months and at the end of the project life, a piece of specialized equipment having a book value of $4,000 is expected to bring $3,000 upon resale, and the income tax rate is 40%, how much will be the cash flow? uygoli

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