Q: Find expected return for G.
A: Expected Return is the amount of loss or profit an investor expects to receive on an investment.
Q: Required: a. Determine the discounted rate of return.
A: Formula: Discount rate= Lower Rate +Lower NPV×Higher Rate-Lower RateLower NPV-Higher NPV
Q: Which are the Methods for Finding Rate of Return?
A: A Rate of Return (ROR) is the gain or loss of an investment over a certain period of time. When the…
Q: Define the term internal rate of return?
A: The internal rate of return (IRR) is a capital budgeting metric used to gauge the benefit of…
Q: Compute the percentage total return. C
A: The method of finding the intrinsic value of the stock of a company is called stock valuation.…
Q: Why is partitioning an internal rate of return important?
A: Introduction: There are two cash flow components which can form the portioning of internal rate of…
Q: Please solve using Rate of Return method.
A: Rate of return is the rate at which return is expected from any investment. This defines the gain or…
Q: Which are the more complex applications of rate-of-return techniques/
A: The question is based on the concept of rate of return and its application in finance
Q: Define return rate
A: The return rate can be calculated on various assets and can be used to compare various investments.…
Q: Explain payback period
A: Answer: Payback period is nothing but the time a company gets back the money that is originally…
Q: Define each of the following terms: d. Modified internal rate of return (MIRR) method
A: Modified Internal Rate of Return (MIRR): The modified internal rate of return (MIRR) method…
Q: Simple Rate of Return
A: Simple rate of return = Net operating income * 100/ Cost of investment
Q: ear. Calculate the rate of return of the investment.
A: Rate of return is the internal rate of return earned. Rate of return = 20.00%
Q: What is the Internal-Rate-of-Return Criterion?
A: Internal rate of return (IRR): The internal rate of return (IRR) is a measure utilized in capital…
Q: what is meant by the required rate of return
A: The return which is expected to be earned by investing in a security is known as Required Rate of…
Q: Define average return
A: The formula to compute average return as follows:
Q: Which different terms are used to refer to rate of return?
A: Rate of return is the return that is expected by the investors from the investment made. It is…
Q: Internal rate of return
A: Internal rate of return- It is the rate of discount at which the sum of discounted cash inflows…
Q: Define payback period.
A: Capital investment analysis: Capital investment analysis is the process of decision making, planning…
Q: Define Expected rate of return
A: Introduction: Usually return is a kind of profit that comes from your investment. Example, an amount…
Q: What is meant by partitioning the internal rate of return? Why is this procedure meaningful?
A: Internal rate of return is defined as the annual rate of earnings on an investment and unlike income…
Q: How can we calculate the Rate-of-Return with Excel?
A: The question is based on the concept of calculation of rate of return (ROR), (ROR) is percentage…
Q: e Internal rate of return
A: The following problem can be solved using XIRR function in excel.
Q: calculate internal rate of return acounting rate of return pay back period
A: Data given: Cost of machine = RM 3,500,000 Useful life of machine = 5 years Residual value = RM…
Q: find the pay-back period with excel.
A: The payback period is the time period in which the cash flows fully covered the initial cash…
Q: Explain four aspects of rate-of-return analysis?
A: The return of return is the return on investment made when the time value cashflows turns to net…
Q: Explain CMO Price Behavior and Prepayment Rates?
A: The question is based on the concept of Collateralized Mortgage Obligations (CMO) , interest rate…
Q: What formula to use to find Payback Period and NPV? (in Excel)
A: NPV or Net Present Value is the present value of all net cash cashflow on a provided discount rate.…
Q: Explain different terms are used to refer to rate of return?
A: Answer: Rate of return is nothing but the returns that are expecting on investments made by…
Q: calculate the internal rate of return
A: Information Provided: Discount rate = 10% Realisable Value = 20%
Q: Explain real rate of return
A: This is the raw rate of return adjusted with inflation. It is used to ascertain the effective return…
Q: What is internal rate of return (IRR) method?
A: NPV shows the excess of PV of all the cash inflows over the initial outlay of the project. It is a…
Q: Define real rate of return.
A: Real Rate of Return is defined as the rate that has been adjusted for rise in prices of commodities.…
Q: Explain expected rate of return
A: Return: Return is defined as the money attained or lost on an investment through certain time…
Q: what is the difference between a required rate of return and an expected rate of return?
A: Rate of return (ROR) is a value at which an investor earns additional amount on invested amount…
Q: /hat is the exact rate of return?
A: MACHINE A PV FACTOR PRESENTVALUE A 0 FIRST COST -8000 8000…
Q: Explain realized rate of return
A: The return generated by an investment is any asset class is the normalized rate of return. When the…
Q: Define realized rate of return
A: Return can be defined as the profit or interest earned by the investor on the investment, which…
Q: What is the machine's payback period?
A: Payback period=Last period with a negative cumulative cash flow+(Absolute value of cumulative cash…
Q: Explain how to calculate net realizable value.
A: Net realizable value refers to the total amount of money which a company will get from selling the…
Q: One of the advantages of Internal Rate of Return is:
A: The correct answer is b. It gives the closet rate of return.
Q: Explain an example how to calculate internal rate of return.
A: IRR is the return actually earned by the investor and discount rate is the return which the investor…
Q: Another term for return is ..................
A: Return means money which is earned or lost in the process of investment. Return can be in the form…
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- 5. LL Consider the following cash flows of a project: Year Year 1. 50 0. 2. 3. 4. 1. Find the internal rate of return for this investment. 0. 20. Multiple Choice < Prev 10 of 15 Next here to search F11 F12 F4 F5 69 81 9F-Calculate the EAR of the following investment, entered as a percentage (Example: if your answer is 0.145, enter 14.5) Year Number Cashflow 0 -11400 1 3500 2 3000 3 3100 4 2800 Your Answer:Hi can you help with this question please? An investment has the following cash flow profile. For each value of MARR below, what is the minimum value of X such that the investment is attractive based on an internal rate of return measure of merit? EOY 0 1 2 3 4 Cash Flow $(30,000.00) $ 6,000.00 $ 13,500.00 $X $ 13,500.00 MARR is 12 percent/year
- What is the internal rate of return of an investment that requires a 10 percent minimum rate of return and has the following projected cash flows: Yr0 = -100, Yr1 = 25, Yr2 = 35, Yr3 = 45, Yr4 = 35, and Yr5 = 30? a. 19.33 percent b. 21.35 percent c. 20.05 percent d. 22.24 percent6.Calculate the project's Modified Internal Rate of Return (MIRR). What critical assumption does the MIRR make that differentiates it from the IRR? TIP : look for the definition of Modified Internal Rate of Return, and then do it in excel, easy !!! Year Net Cash flow Future Value of Net Cash flow 0 -$20.8 example 1 $4.5 $7.97 (n=6, i=10%)=fv(.1,6,,4.5) 2 $6.3 (n=5, i=10%) 3 $5.2 (n=4, i=10%) 4 $3.9 (n=3, i=10%) 5 $2.1 (n=2, i=10%) 6 $1.3 (n=1, i=10%) 7 $0.5 (n=0, i=10%) Sum = $XX.XX MIRR = ( in excel ) Rate ( 7,-20.8, xx.xx) 7.Where does the value of MIRR fall relative to the discount rate and IRR?16. You are considering an investment with the following cash flows: Year Cash Flow 0 -$50,000 1 $ 7,000 2 $ 4,000 3 $9,000 4 $61,000 What is the internal rate of return (IRR) for this investment? SHOW WORK
- What is the net present value of an investment that requires a 10 percent minimum rate of return and has the following projected cash flows: Yr0 = -100, Yr1 = 25, Yr2 = 35, Yr3 = 45, Yr4 = 35, and Yr5 = 30? a. 41 b. 28 c. 34 d. 35Consider cash flows Year 0: -6900 Y1: 1700 Y2: 2900 Y3: 2900 Y4: 3500 What is the profitability index for this project if the return is 10%You are considering the following two mutually exclusive investments: Project Year 0 Year 1 Year 2 A -$80 0 $120 B -$40 $28 $28 Which project has the higher NPV if the required rate of return is 5%?
- Calculate the APR of the following investment, entered as a percentage (Example: if your answer is 14.5%, enter 14.5 and not 0.145) Year Number Cashflow 0 -11000 1 3000 2 3500 3 2900 4 2800ou invest $1000at time t=0 and an additional $5000 at time t=1/2. At time t=1/2 you have $1300 in your account and at time t=1 you have $6100 in your account. Find the dollar-weighted rate of return rd and the time-weighted rate of return rt on this investment.Consider the investment project with net cash flows shown. There are 2 rates of return for the project. One is 43.47%. What is the other? Enter as a percentage without the percent sign. For instance, if your answer is 10.23%, enter as 10.23. n Net Cash Flow 0 -$8000 1 $10000 2 $30000 3 -$40000