All cash flows from a project are shown in the diagram below. Which formula calculates the correct internal rate of return for the project? 1 2 3 4 5 6 7 8 9 10 st A B The valuation date is December 1, 2024. (YY-MM-DD) Cashflows 12-31-2023 12-01-2024 12-12-2025 12-04-2026 12-07-2027 12-08-2028 (150,000) (100,000) 84,000 90,000 98,000 120,000 =XIRR(C6:C10,B6:B10) =XIRR(C5:C10,B5:B10) =IRR(C5:C10) DE =XIRR(B5:B10,C5:C10)

All cash flows from a project are shown in the diagram below. Which formula calculates the correct internal rate of return for the project? 1 2 3 4 5 6 7 8 9 10 st A B The valuation date is December 1, 2024. (YY-MM-DD) Cashflows 12-31-2023 12-01-2024 12-12-2025 12-04-2026 12-07-2027 12-08-2028 (150,000) (100,000) 84,000 90,000 98,000 120,000 =XIRR(C6:C10,B6:B10) =XIRR(C5:C10,B5:B10) =IRR(C5:C10) DE =XIRR(B5:B10,C5:C10)

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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The following are the cash flows of two projects: Project B Year Project A 0 $ (235) $ (235) 115 135 115 135 115 135 115 1234O 1 2 3 4 What are the internal rates of return on projects A and B? Note: Enter your answers as a percent rounded to 2 decimal places. Project A B IRR % %
Q7 - Consider the following project: Year Cash Flow 0 – $ 3,024 1 17,172 2 – 36,420 3 34,200 4 – 12,000 a) Determine the IRR (s) for this project. b) At which rates of return will the project be acceptable?
You are given the following cash flows for a project. Assuming a cost of capital of 12.84 percent. determine the profitability index for this project. Year 0 1 2 3 4 5 O 14981 O 1.68/7 O1.7508 1.6245 1.5613 Cash Flow -$1,115.00 $554.00 $622.00 $648 00 $426.00 $216.00
Consider the following two mutually exclusive projects: Year Cash Flow (X) Cash Flow (Y) 0 -$ 15,900 -$ 15,900 1 6,710 7,290 2 7,290 7,730 3 4,810 3,630 a. What is the IRR of Project X? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decim b. What is the IRR of Project Y? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decim c. What is the crossover rate for these two projects? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decim a. IRR b. IRR % % c. Crossover rate %
The following are a project's cash flows. What is the projects year - 110155450 cash flows - 9.70% 5. 14.660%. 8.64% 10.78% . =. 16.94% IBR? $450 $40 3 8490
The following are the cash flows of two projects: Year 0 1 2 3 4 Project A $ (220) 100 100 100 100 Project B $ (220) 120 120 120 What are the internal rates of return on projects A and B? Note: Enter your answers as a percent rounded to 2 decimal places. Project A B IRR % %
Here are cash flows for a project under consideration. C(0)= -$8160, C(1)=6180, and C(2)=20280. What is the IRR of the project?
The cash flows associated with a project can be represented by the following decision tree (conditional probabilities are in parentheses): Year 0 Year 1 5000 O $289.09 O $317.46 O $232.35 $400 (4) O $345.83 O $260.72 $600 (0) Year 2 $300 (5) $600 (5) $400 (5) 5600 (5) Given this data, determine the expected NPV for this project if the appropriate cost of capital is 12.84 percent. Year 3 $200 (5) $400 (5) $400 (5) SEOD (5) $300 (5) $500 (5) $600 (5) $700 (5)
onsider the following cash flows: C0=-$42 C1=+$38 C2=+$38 C3=+$38 C4=-$76 a. Which two of the following rates are the IRRs of this project?
The cash flows associated with a project can be represented by the following decision tree (conditional probabilities are in parentheses): Year 0 Year 1 -$800 O $292.06 $218.95 $243.32 O $267.69 $400 (4) O $316.43 $500 (6) Year 2 $300 (.5) $500 (.5) Given this data, determine the expected NPV for this project if the appropriate cost of capital is 12.68 percent. $400 (.5) $600 (-5) Year 3 $200 (.5) $400 (.5) $400 (5) $600 (.5) $300 (.5) $500 (.5) $500 (.5) $700 (.5)
Calculating IRR Compute the internal rate of return for the cash flows of the following two projects: Year Project A Project B 0 -$7,300 -$4,390 1 3, 940 2,170 2 3,450 2,210 3 2,480 1,730
You are given the following data for a project that is to be evaluated using the APV method. Year EBIT CAPEX 0 O $201.765 O $193,822 O $185,617 O $222,872 O $213,918 1 $127.000 $60,000 2 Depreciation Increase in NWC Year-end net debt $80,000 Cost of net debt = 8% Unlevered cost of capital = 11.8% Corporate tax rate = 30% Calculate the total value of the project at t = 0. using the APV method. $72,000 $50,000 $100,000 $133,000 $40,000 $80,000 $60,000 $140,000 3 $138.500 $10,000 $84,000 $30,000 $140,000

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