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If the investment rate is 12%, the borrowing rate is 15%, and the MARR is 14%, what is the
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- Calculate the Rate of Return of the project. Explain, how and why? Rate of interest = 10%Consider an investment project with the following net cash flows: What would be the value of X if the project's IRR is 10%?Consider the following sets of investment projects: Compute the equivalent annual worth of each project at i = 10%, and determine the acceptability of each project.
- What is the ERR for this project? Assume that = 12% and MARR = 20% per year. Is this project considered to be profitable? What is the simple payback period?Calculate the ROR of the project Rate of interest = 10%Refer to the problem given in answering the following questions:(a) How long does it take to recover the investment?(b) If the firm's interest rate is 15%, what would be the discounted-paybackperiod for this project?
- You are looking at an investment that will pay you $22,995 in year 2, $43,270 in year 4 and $41,525 in year 6. If your required return is 8.73%, what is the most you should pay for the investment? (In other words, how much is the project worth today?)a). When ε= 15% and MARR = 20% per year, determine whether the project (whose total cash flow diagram is shown below) is acceptable using ERR b). What is the IRR of the project ?Suppose you considering investing $34 to earn $4.8 every year for forever. If the annual interest rate is 6.2%, what is the NPV of this project? Suppose you considering investing $24 to earn $6.6 every year for forever. If the annual interest rate is 6.5%, what is the NPV of this project?
- What is the NPV of a project with an initial investment of $100, a cash flow in one year of $105, and a discount rate of 10 percent?Consider a project in which you have to invest $15,000 today and you will receive $24847 in one year. What is the internal rate of return (IRR) of this project? The IRR is % (Keep 2 decimal places). Answer:A project has a rate of return of 23%. What is the future value of the project if the investment today is $400?