For the following cash flow, if the reinvestment rate is equal to MARR, which is 16%, and the financing rate is 10%, Investment 1 3 4 -2000 200 3000 -1500 800 1000 What is the IRR? What is the MIRR? 8. 9.
Q: A production company is considering the following plans for production improvement: A. B C. Initial…
A: Interest Rate = 6% Project A Initial Cost = 10,000 Equivalent Uniform Annual Benefit = 1,625 N =…
Q: The table bellow shows the cash flow for an engineering project, if the reinvestment rate of return…
A: ERR is a technique used for investment appraisal.
Q: For the net cash flow series, find the external rate of return (EROR) using the MIRR method with an…
A: The given problem can be solved using MIRR function in excel.
Q: a) The initial outlay of the investment is €125,000. The income stream is €30,000 in year 1, €55,000…
A: Given Information: Initial investment - 125,000 Income stream: Year 1 - 30,000 Year 2 - 55,000 Year…
Q: You have a certain investment with the shown cash flow diagram. The investment rate is 15% and the…
A: To Find: Value of X
Q: Yıl Nakit akışı 0 -1000 TL 1 +300 TL 3 +300 TL 4 +300 TL 5 +300 TL
A: Internal Rate of Return is the rate at which NPV of the Investment is zero. It is compared with MARR…
Q: Problem 07.037 - MIRR calculation For the net cash flow series, find the external rate of return…
A: given information the investment rate = 16% borrowing rate = 11%
Q: What is the net present value of a project with the following cash flows if the required rate of…
A: Net Present Value (NPV)NPV is the method of evaluating the worth of an investment or project by…
Q: Wells Inc., has identified an investment project with the following cash flows. Year…
A: The future value calculation is an important tool of financial management. In future value…
Q: If the investment rate is 12%, the borrowing rate is 15%, and the MARR is 14%, what is the rate of…
A: Rate of return of the project is calculated using IRR. IRR is the rate at which Present Value of…
Q: For the nonconventional net cash flow series shown, the external rate of return per year using the…
A: Computation:
Q: a)Calculate the intemal rate of retum (IRR) of the following cash flow. Determine if this is a good…
A: IRR is rate that makes present value(PV) of inflows and outflows of proposal equal whereas ERR is…
Q: Wells, Inc., has identified an investment project with the following cash flows. Year Cash Flow $…
A: Future value at year 4 = [Year 1 cash flow x (1 + r)3] + [Year 2 cash flow x (1 + r)2] + [Year 3…
Q: what is the NPV of this investment?
A: Information Provided: Discount rate = 7% Annual Cash Inflow = $2Million Initial Cash Outflow = $25…
Q: A project has the following cash flows. What is the internal rate of return? Years Cash flow…
A: Solution:- Internal Rate of Return (IRR) is the rate of return which the bank is yielding. At IRR,…
Q: A project has the following cash flows: 0 1 2…
A: In the given we require to calculate the NPV of the project. NPV = Present value of Cash Inflows -…
Q: Assume that you will receive $2,000 a year in Years 1 through 5, $3,000 a year in Years 6 through 8,…
A: Let CFn be the cashflow in year n. CF1 to CF5 = $2000 CF6 to CF8 = $3000 CF9 = $4000 r = 14%
Q: A project has the following cash flows : Year Cash Flows -$12,400 5,530 7,990 5,360 4. -1,500…
A: The capital budgeting technique is used for the purpose of evaluating different projects in order to…
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: Consider a project with the following cash flows: Year Cash Flow - 10000 1 5000 5000 3 5000 4 5000…
A: Discount Rate = 15% Time Period = 4 Years
Q: The net cash flows of two alternative projects that require an investment of 120,000 TL are as…
A: The capital budgeting is a technique that helps to analyze the profitability of the project and…
Q: BECL Ltd is considering a project, which will involve the following cash inflows and (out)flows:…
A: Net Present Value The net present value method is the method of capital budgeting based upon the…
Q: The table bellow shows the cash flow for an engineering project, if the reinvestment rate of return…
A: Reinvestment rate can be defined as that rate at which a shareholder can reinvest the cash flows…
Q: 16. You are considering an investment with the following cash flows: Year Cash Flow 0…
A: Year Cash Flow 0 -$50,000 1 $ 7,000 2 $ 4,000 3 $9,000 4 $61,000
Q: If the investment rate is 12%, the borrowing rate is 15%, and the MARR is 14%, what is the rate of…
A: Investment Rate = 12% Borrowing Rate = 15% MARR = 14%
Q: What is the NPV of the following project if the discount rate is 11%? Round to the nearest…
A: NPV refers to net present value of an investment or a project. It is used in capital budgeting.
Q: The capital investment in the system is $72,000, and the projected annual savings are tabled below.…
A: Future Worth: Using an expected rate of growth, future value (FV) is defined as the worth of a…
Q: If the investment rate is 12%, the borrowing rate is 15%, and the MARR is 14%, what is the rate of…
A: Investment Rate = 12% Borrowing Rate = 15% MARR = 14%
Q: The table bellow shows the cash flow for an engineering project, if the reinvestment rate of return…
A: The external rate of return refers to the rate that equates the present value of all cash outflows…
Q: You are looking to invest in a project. The expected return of 5% is used as the discount rate. The…
A: Discount Rate = 5℅ Initial Investment = P6,000,000
Q: Consider the following cash flow cash flow year 0 -1000 TL 2 +300 TL 3 +300 TL 4 +300 TL 5 +300 TL…
A: Internal Rate of Return is the rate at which NPV of the Investment is zero. It is compared with MARR…
Q: Wells, Inc., has identified an investment project with the following cash flows. Year…
A: Information Provided: Cash flow Year 1 = 970 Cash flow Year 2 = 1200 Cash flow Year 3 = 1420 Cash…
Q: If ɛ = 10% per year, what is the ERR for the cash flows of this project? Let MARR = 10% per year.…
A: External Rate of Return(ERR) is the rate similar to IRR that makes the future value of all inflows…
Q: Dalvi Incorporated is considering a new Investment. The table below lists the cash flows. Year Cash…
A: The payback period is the time period in which the Initial amount is fully recovered from future…
Q: Consider the investment project with the following net cash flows: What would be the value of X if…
A: Internal rate of return(IRR) is the rate where the net present value of a project is zero.
Q: An investment is expected to produce the following annual year-end cash flows:year 1: $5,000 year 4:…
A: Net Present Value (NPV) is the calculation of present value of net cash inflows from the investment…
Q: For the cash flows shown, determine: (a) the number of possible i* values (b) the i* value displayed…
A: Calculation of the possible i* values, IRR and external rate of return using MIRR is shown below:…
Q: Fox Co. has identified an investment project with the following cash flows. Year 1 Cash Flow $1,330…
A: Present value can be defined as the current value of an amount of money or a series of cash inflows…
Q: What is the payback period of a £40000 investment with the following cash flows? Year CF 1 £20000 2…
A: The payback period refers to the amount of time it takes to recover the cost of an investment. In…
Q: What is the present value of an investment with the following cash flows? Year 1 $14,000 Year 2…
A: Solution:- Present value means the value in today’s terms after discounting the future cash flows to…
Q: Consider another set of net cash flows: Year Cash flow 0 1,500 1 2,000 2 0 3 1,500 4…
A: Formulas:
Q: Find the profitability index for Oman Air conditioner Company if the initial investment is 4000 OMR…
A: Profitability index helps in determining the attractiveness of a project. It is calculated by…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
- 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 percentCalculate the HPR of the following investment, entered as a percentage (Example: if your answer is 14.5%, enter 14.5 and not 0.145) Period Cashflow 0 -14100 1 3300 2 3300 3 3100 4 28006.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?
- Consider the following cash flow. Calculate the rate of return for an investment of 1000 TL.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:You identify an investment project with the following cash flows. If the discount rate is 10%, what is the present value of these cash flows? Y1- $500 Y2- $550 Y3- $800 Y4- $450. Please type answer no write by hend.
- 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. 357.16)Consider the investment projects given in Table P7.16. Assume that MARR = 12% in the following questions. (a) Compute i* for each investment. If the problem has more than one i*, identify all of them. (b) Compute IRR(true) for each project. (c) Compute the MIRR at MARR = 12%. (d) Determine the acceptability of each investment. TABLE P7.16 Net Cash Flow Project 1 Project 2 Project 3 -$1,000 -$1,000 -$1,000 1 2,500 1,960 1,400 2 -840 950 -200You are considering an investment project with the cash flows of -300 (the initial cash flow), 800 (cash flow at year 1), -200 (cash flow at year 2). Given the discount rate of 10%, compute the Modified Internal Rate of Return (MIRR) using the discountingapproach. 19.72% 71.94% 37.52% 50.55%
- 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 -$40000If the cash flows for Project M are C0 = -1,000; C1 = +800; C2 = +700 and C3= -200. Calculate the IRR for the project. For what range of discount rates does the project have a positive NPV?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