Answered: If a capital investment is $28,752.7…

If a capital investment is $28,752.7 and equal annual cash inflows are 69,943.5, state the internal rate of return factor rounded to two decimal places.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: What uniform scries over periods (1,11) years is equivalent at 6 % compounded EOY I3 4 Cash Flow 585…

A: Uniform series is the equivalent amount of cash flow over the period of time which is equivalent to…

Q: The following cash flows are all end-of-period values. .. 400 200 400 .. 300 2 3..... 10 Use a 10%…

A: The computation of equivalent annual series of end of the year payment is as follows:

Q: Consider end-of-year cash flows for $8000, $15000, $22000, $29000, and $36 for years 1 to 5. If the…

A: Cashflows: Year 1 = $8,000 Year 2 = $15,000 Year 3 = $22,000 Year 4 = $29,000 Year 5 = $36,000

Q: Over one year, future value or cash flow (CF), present value (PV), and the rate of interest (i) are…

A: Future value or CF = PV x (1+i)^twherePV = Present valuei = rate of interestt = time = 1 year

Q: Consider the following timeline: Date Cash flow ? A. $472 B. $944 $100 C. $600 OD. $614 2 $200 3 Å…

A: Cash Flow for Year 1 = cf1 = $100Cash Flow for Year 2 = cf2 = $200Cash Flow for Year 3 = cf3 =…

Q: Consider the following cash flows: Year Cash Flow -$29,900 13,800 15,100 11,500 1 3 a. What is the…

A: Profitability index measures the return generated by each dollar of investment. Itcan be calculated…

Q: Calculate the value of the cash flows at time 6. The interest rate is 11.76%. 1 $1,136 $2,107 $3,096

A: The value of cash flows is calculated as sum of future value of cash flows at the end of year 6

Q: 1. Compute the IRR for the investment represented by the following cash flow table: Year 0. 1 3 4 6.…

A: An internal rate of return or IRR is referred to as the metric, which are used in the financial…

Q: a) NPW using an interest rate of 15% b) NPW using an interest rate of 20%

A: Net Present Value (NPV) or Net Present Worth (NPW) It is the present value of future cash flows…

Q: An investment of $81,000 yields a net annual income of $17,000 for 6 years. What is the internal…

A: Capital budgeting is the process of making capital investment decisions by a corporation. Capital…

Q: ssume that the amount of initial investment is $350,000 and the scheduled receipts are $250,000 in…

A: Net Present Value is the difference between the present value of cash inflows and cash outflows.

Q: What's the FUTURE value of the following cash flows, at 6%/period: 0,200,400,600,800,1000

A: The objective of the question is to calculate the future value of a series of cash flows at a given…

Q: =NPV(B26,I27:R27)-B24 B26 = discount rate of 9% B24 = initial investment of $30m I27:R27 = yearly…

A: NPV represents the absolute profitability measure of the project and is applied by financial…

Q: 6. Determine the equivalent present worth in year 0 (PT) of all of the cash flows at i = 12% per…

A: Data given: i= 12% Initial cash flow in year 0 = $30000 Annual cash flow from year 1 to 3 = $5000…

Q: What uniform series over the interval [1,8] will be equivalent to a uniform series of $10,000 cash…

A: Uniform series means the uniform cash flows which are going to generate over the years from a…

Q: At a rate of 10.0%, what is the future value of the following cash flow stream? Years: 1 4 CFs: $0…

A: Future value is the future worth of cash flows that has occurred in the past or present.

Q: Consider the following cash flow diagram. What is the value of X if the internal rate of return is…

A: Internal Rate of Return (IRR) refers to that rate at which business determine its discount rates and…

Q: Consider end-of-year cash flows for $8000, $15000, $22000, $29000, and $36000 for years 1 to 5. If…

A: Given cash flows Cashflows: Year 1 = $8,000 ;Year 2 = $15,000; Year 3 = $22,000 ; Year 4 = $29,000;…

Q: Investment Perlod 1 3 4 A $(1,000) $100 $100 $100 $100 $1,100 B (1,000) 264 264 264 264 264 (1,000)…

A: Rate of return= 5% Period= 5 years NPV = CF0 + CF1 ··· + CFt /(1+r)t Where CF= Cash Flow of various…

Q: Determine the rate of return of the example cash flow shown in the table below. Year…

A: Internal rate of return is the modern method of capital budgeting that is used to determine the rate…

Q: Calculate to at least four decimal places, answers should be stated as percentages to two places for…

A: Internal rate of return or IRR is the rate at which the net present value or NPV of a project is…

Q: Calculate to at least four decimal places, answers should be stated as percentages to two places for…

A: Internal rate of return Internal rate of return refers to the exact return that investment is…

Q: Based on the information above, the capital gains yield for the coming year is closest to A. 9.08%.…

A: The required return on a stock consists of the dividend yield and capital gains yield. The capital…

Q: f the cash is 135 (CA), marketable securities 120(CA), bills payable 35(CL), bills receivable 45…

A: Current assets means those assets which will be converted in to cash in near future generally one…

Q: Given: Base amount = $5000, gradient = $1000,/= 12 %, n=5. For the given values, determine the…

A: Starting value: $5,000Gradient (g): $1,000i=12%n=5

Q: If a capital investment is $28,048 and equal annual cash inflows are 62,605.3, state the internal…

A: Solution: Internal rate of return factor is arrived at by dividing capital investment by annual cash…

Q: For the arithmatic gradient of cash flow given below, if G= $150 , the value at year 24(V2

A: 'G' refers to the amount by which cash flows increases every year.

Q: Use an external investing rate of 12% and an external borrowing rate of 6%. Compute the rate of…

A: The given problem can be solved using MIRR function in excel. MIRR function computes rate of return…

Q: or this investment? 19.54% -24.43% 13.03% 1. 29.31% 15 63%

A: Internal rate of return is return on which present value of cash flow is equivalent to initial…

Q: For each of the investments below, calculate the rate of return earned over the period. Cash Flow…

A: In this question, we are required to determine the rate of return for Investment A, B, C, D and E.

Q: Consider the following cash flows: Year Cash Flow 0 -$ 28,900 1 14,800 2 3 14,100 10,500 a. What is…

A: The profitability index is a financial tool that tells us whether an investment should be accepted…

Q: Q2. Compute the rate of return on the investment characterized by the following cash flow. Year 0 1…

A: Rate of return is annual % return on investment. Investment is an amount of cash outflow in initial…

Q: a) How many possible rate of returns b) If the reinvestment rate c = 15%, find the composite rate of…

A: Rate of Return: This return represents the net profit or loss over a period for the investment. It…

Q: Years: CFS: of 6.5%, what is the future value of the following cash flow stream? 0 2 F $0 a. $526.01…

A: SolutionI/YR = 6.5% 0 1…

Q: For the intrinsic value, why is the cashflow divided by (10%-6%

A: Intrinsic value of a stock or any other financial security is the fundamental value of that stock or…

Q: What is the internal rate of return (IRR) of the following set of cash flows? (Enter your answer as…

A: Capital budgeting helps to make good investment decisions, prioritizes projects and ensures the…

Q: What is the payback period (in annual terms) of the following cashflow stream?

A: Payback Period: It refers to the period in which the initial cost of investment or project is…

Q: What is the present value of the following cash-flow stream if the interest rate is 4%? Year…

A: Present value means the current value of a future sum of money of cash flows given a particular rate…

Q: Given the following cash flows in table below, determine the rate of return to the nearest second…

A: Step 1 IRR differs in that it takes into account numerous periodic cash flows, reflecting the fact…

Q: $169,700 initial investment will generate the following present values of net cash flows. What is…

A: The break-even point is the moment at which total income equals total costs, resulting in neither…

Q: What are the exponents to be used for each cash flows in computing the future value of 3 uneven…

A: Future value is the value of an asset which grows to a higher value over time. It is because money…

Q: Present value represents: (LO C-2) a. The value today of receiving money in the future. b. The…

A: Financial Management: In layman’s words, financial management is the management of the finance or…

Q: Assume that you are looking at 3 perpetuities. P1 has annual cash flows of $850 in Yeata 1 through…

A: Perpetuity are type of annuity in which cash flows are forever and continue forever.Present value…

Question

If a capital investment is $28,752.7 and equal annual cash inflows are 69,943.5, state the internal rate of return factor rounded to two decimal places.

Definition Definition Transfer of funds into a company by any third party, which may happen due to any operational, investing, and financing activities. The cash inflow includes payments made by customers or investments made by the investors into the company by purchasing its equity.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Use excel
I am studying annual series A uniform annual series can actually be considered an average of all the cash flows considered for its calculation?
Find the NPV for the following cash flows assuming a WACC of 10%. YR CF 0 -15,000 1 6,000 2 4,000 3 2,000 4 3,000 5 2,000
2. Compute the IRR for the investment represented by the following cash flow table: Year 1 4 6. 7. Cash Flow -1200 +350 +300 +250 +200 +150 +100 +50 (in $1000's)
Two cashflows A and B consist of three payments at t = 0, 1, 2 where t is in years. Cashflow A is C A 0 = .82, CA 1 = −1, CA 2 = 2 while cashflow B is C B 0 = .01, CB 1 = .8, CB 2 = 1. Find the interest rate where the two cashflows are equal (assuming the same interest rate for both cash flows.)
What is the present value of the mixed cash flow pattern as below? Assuming a 3.3% interest rate (compounded annually). End of year Cash Flow 2 3 9 1.561 2.992 3,706
9.
What's the FUTURE value of the following cash flows, at 6%/period: 0,200,400,600,800,1000
What is the internal rate of return of the following cash flow diagram? a. 20.0% b. 18.2% c. 17.5% d. 15.0%.
26. (ts) For the following set of cash flows, calculate the NPV, IRR, MIRR, Profitability Index and Payback Period. Assume the WACC is 8%. NPV: IRR: MIRR: Profitability Index Payback Period: Year Cash Flow 0 $ (580,000.00) 1 $ 120,000.00 2 $ 132,000.00 3 $ 139,920.00 4 $ 151,190.00 5 $ 145,150.00 6 $ 148,250.00 Is this project acceptable? Why or why not? I
For each of the investments below, calculate the rate of return earned over the period. Investment ABCDE Cash Flow During Beginning-of-Period End-of-Period Value Period Value - $400 13,000 4,000 60 1,700 $1,700 140,000 60,000 800 14,500 $800 117,000 46,000 400 12,600