Answered: Find the rate of return (IRR-Ch16.3) on…

Find the rate of return (IRR-Ch16.3) on a project that will cost $100,000 today and $400,000 in 3 years from today, BUT will return $50,000 at the end of every year for 11 years (4)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: A civil engineer planning for her retirement places 12% of her salary each year into a…

A: Here we calculate the future worth of his retired fund , so calculation of the following by using…

Q: Five years ago, Logocom made a $ million investment in a new high-temperature material. The product…

A: The Rate of return can be calculated as

Q: an engineer knows that the supplier of their set-5100 laser surface metrology system used on one of…

A: Opportunity cost is the foregone cost/benefit that would have been received by choosing the foregone…

Q: For a 20-year geometric cash flow progression increasing at 2% per year, the first-year amount is…

A: Introduction: Cash flow is outlined because the net amount money|of money} and cash equivalents…

Q: Determine the rate of return (6) of the following cash flow using the ERR method and the…

A: ERR: The economic rate of return is a method that is used to measure the profitability of an…

Q: A company predicts they will make $1,321 per year over the next 19 years if they spend $2,497 on a…

A: Present value is the value of investment in today's dollar. Future value is the value of investment…

Q: Now suppose the stock market for the next 10 years has a strong growth rate. If you invested your…

A: Invested Amount (P)$1400 Interest rate(r) = 16% or 0.16 compounded annually, Time(T) = 10years To…

Q: 5-15 For the cash flow shown in Fig.5-17, find the values C and F if i = 12% per year. 2 3. 4. r =…

A: Year Cash Flows 0 0 1 0 2 1000 3 1100 4 1210 5 1331 6 1464.1 7 0

Q: The prospective exploration for oil in the outer continental shelf by a small, independent drilling…

A: ERR is the economic rate of return which is a single metric showing how a project's economic…

Q: Fitness, Inc. Is advertising a new exercise machine for $1999.99. they will finance the purchase at…

A: We are going to use equal monthly installment formula to answer this question.

Q: Q5 If 1(t) = 3000t (thousands of dollars per year) -a nonconstant flow- what will be the capital…

A: Given information of Numerical: I(t) = 3000t1/2Capital formation interval 1,4

Q: The Cornballer, invented by George Bluth in the mid-1970s, is a device used to make cornballs. It…

A: Sale in 1981 =10,000 Annual increase in sale =10% and the last sale was been made in 1990. Annual…

Q: (2] PV (Present Value) = PV(rate,nper,pmt, Fv,type) PV( 1%,n,A,Fv) Problem: : i= 8% per year, n= 36…

A: PMT 300 FV 12,000 i 0.667% (8%/12) n 36

Q: A company would like to invest on a project. The rate the company uses to justify their investments,…

A: Over the course of an investment, capital recovery refers to the return of your initial investment.…

Q: An engineer will deposit 15% of her salary each year into a retirement fund. If her current annual…

A: Present value refers to the cash needed now to hit a particular goal in the future. Meanwhile,…

Q: Darnell Enterprises constructed an addition to its building at a cost of $73,000. Extra annual…

A: The provided question has been answered from the theories of 'Financial Economics'.A statistic…

Q: Motorcycle dealers offer new motorcycles that can be purchased by credit, where the down payment is…

A: To calculate the cost of the motorcycle when bought outright (paid in cash), we can use the formula…

Q: Should this be collected by retailers when electronic products are sold to consumers, or should it…

A: Rate or return or ROR refers to the actual profit or loss incurred upon an investment for a specific…

Q: How many days will it take for a sum of $2,000 to eam $50 inrest if it is deposited in an account…

A: The formula for simple interest is as follows:- SI = (P*R*T) / 100 Where P is the principal amount R…

Q: A young engineer wishes to become a millionaire by the time he is 60 years old. He believes that he…

A: Investment in economics refers to the purchase of goods that are not consumed today but are used to…

Q: Determine the value of the given gradient factor. (P/G, 8.15%, 37)

A: Present value is the value of investment in today's dollar. Future value is the value of investment…

Q: An Engineer plans to retire on the day he turns 60-year old. To address his retirement, he wants to…

A: It is possible to save a percentage of one's income for retirement through retirement funds, also…

Q: A Xerox DocuColor photocopier costing $36,000 is paid off in 60 monthly installments at 6.70% APR.…

A: To calculate the Minimum Selling Price, we firstly need to determine the monthly payment using the…

Q: A$ 100,000 machine replacement project indicates that it can generate, after-tax cash flows, $…

A: Initial cost = $100,000 After-tax cash flow per year = $35,000 year = 10

Q: (47,500.00) (1,750.00) 2$ (3,000.00) (1,750.00) (3,000.00) 32,000.00

A: ANSWER 0 $ (47,500.00) 1 $ (1,750.00) 2…

Q: help please answer in text form with proper workings and explanation for each and every part and…

A: Step 1:Step 2:Step 3: Step 4:

Q: Approximately, what is the value of the total Present worth (where Ptotal= PA + PG) if G (arithmetic…

A: An arithmetic gradient is a type of cash flow in which the cash flow fluctuates by the same number…

Q: A-1 Mortgage makes loans with the interest charged on the loan principal rather than on the unpaid…

A: Annual worth is a financial metric used in engineering economics and capital budgeting to evaluate…

Q: None

A: Step 1: Calculate Total RevenueThe total revenue from Steven's auto repair shop is R230 000.Step 2:…

Q: 2. Contractor BTT submitted its Progress Billing No. 4 to the Project's Owner. Under the contract as…

A: In Financial economics, Progress billing refers to an accounting technique where the client is…

Q: The process for producing a fruit-tree pesticide has a first cost of $200,000 (initial investment at…

A: To find the discounted payback period firstly we compute the net cash flows taking into…

Q: Help

A: Approach to solving the question:Please see attached photos for detailed solutions. Thank you.…

Q: Example: A new process for a manufacturing process will have a first cost of $55,000 with annual…

A: The payback period is the period or the duration over which a certain machine or project has earned…

Q: As an engineer, you plan to put aside 20% of your yearly income. You expect to make Php1 million in…

A: YEAR INCOME SAVINGS ACCUMULATED AMOUNT 1 1000000 200000 220000 2 1010000 202000 244420 2…

Q: Q10) What is the IRR in the following cash flow? Year 0 Cash flow, $ -3,345 1 1,100 2 1,10 A) 12.95%…

A: Internal Rate of Return: IRR is the rate of interest at which the present worth of the cash inflow…

Q: Humana Hospital Corporation installed a new MRI machine at a cost of $760,000 this year in its…

A: Given information Machine cost (MC) = 76,000 n = 5 Machine sold (MS) = $115,000 Return requirement…

Q: An independent contractor for a transportation company needs to determine whether she should upgrade…

A: EUAC stands for "Equivalent Uniform Annual Cost." It is a financial metric used in capital budgeting…

Q: One of the concerns of economists and policy makers is the share of the labor factor in the total…

A: Given,

Q: You decide to save slightly less than that and save $600 a month to invest into a retirement account…

A: Annuities are financial instruments that helps people to solve the risk of outliving their savings.…

Q: If return of 18% per year is required, calculate the payback periods of the machines shown below.…

A: The payback period is the time you need to recover the cost of your investment. In simple terms, it…

Q: An electronic device is available that will reduce this year's labor costs by $8,000. The equipment…

A: Finding the Net Present Value of a project by taking its net cash flows over its whole life is a…

Q: You are a corporate account officer with the Commercial & In- dustrial Bank Corporation (CIBC).…

A: To calculate the SOFR forward rates, we can use the formula: SOFR Forward Rate = [(1 + SOFRn * n /…

Question

3) Find the rate of return (IRR-Ch16.3) on a project that will cost $100,000 today and $400,000 in 3 years from today, BUT will return $50,000 at the end of every year for 11 years (4)

Definition Definition Percentage gain or loss from a specific investment over time. The rate of return is the difference between the closing and initial values of an investment divided by the initial value of the investment. The closing value includes any intermediate cash flows such as dividends or interest amounts.

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: Understand the concept of IRR

VIEW

Step 2: Calculating the IRR

VIEW

Solution

VIEW

Step by step

Solved in 3 steps with 5 images

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, economics and related others by exploring similar questions and additional content below.

Similar questions

Suppose that annual income from a rental property is expected to start at $1,330 per year and decrease at a uniform amount of $40 each year after the first year for the 15-year expected life of the property. The investment cost is $7,000, and i is 7% per year. Is this a good investment? Assume that the investment occurs at time zero (now) and that the annual income is first received at EOY one. Click the icon to view the interest and annuity table for discrete compounding when i = 7% per year. The present equivalent of the rental income equals $. (Round to the nearest dollar.) Is this a good investment? Choose the correct answer below. Yes No
A small company heats its building and spends $8000 per year on natural gas for this purpose. Cost increases of natural gas are expected to be 10% per year starting one year from now (ie. the first cash flow is $8800 at EOY 1). Their maintenance on the gas furnace is $345 per year, and this is expense is expected to increase by 15% per year starting one year from now. If the planning horizon is 15 years, what is the total annual equivalent expense for operating and maintaining the furnace? Interest rate is 18% per year. please draw the cash flow diagram please follow the instructions to hit up thanks ib advance
J 7 I just need help with part C
number 1
Company B has a P5M loan for a new security system it just bought. The annual payment is P444,000 and the interest rate is 8% per year for 30 years. Your company decides that it can afford to pay P500,000 per year. After how many payments (years) will the loan be paid off? a. 18.78 yrs b. 15.67 yrs c. 20.44 yrs d. 25.76 yrs
Determine the value of the given gradient factor. (A/G, 4.15%, 46) round to the nearest WHOLE NUMBER
Need correct answer.absuletly upvote !!
Q12
A4 Please complete the things I have not filled out. I believe the best way to complete this is using excel. Also make sure to do the part that says to perform the incremental IRR analysis for the remaning alternatives (The part that has The IRR delta (C - A = ?? %). Thank You!
The American Pharmaceutical Company (APC) has a policy that all capital investments must have a three-year or less discounted payback period in order to be considered for funding. The MARR at APC is 7% per year. Is the above project able to meet this benchmark for funding? Click the icon to view the interest and annuity table for discrete compounding when the MARR is 70er year. The payback period is years. (Round to the nearest whole number.) End of Year 1 2 3 4 5 6-8 Cash Flow - $275,000 - $25,000 $50,000 $180,000 $235,000 $330,000 $95,000
Paul works for a government agency in southern California making $65,000 per year. He is now being transferred to a branch office in Tennessee. The salary reduction associated with this transfer is cost of is cost living in by this in pay Tennessee is 96. Over the next five years, what is the FW of Paul's extra income/improved life style (through the reduced cost of living) from having made this move? Paul's MARR is 10% per year ( that in Click the icon to view the interest and annuity table for discrete compounding when/-10% per year The FW of Paul's extra income/improved life style is $(Round to the nearest dollar)
Suppose $100 is invested today in a project that returns $330 in 6 years. Calculate the IRR of this investment.