Ivy's Ice Cream is looking at an opportunity that would require an investment of $900,000 today.  The investment will provide cash flows of $250,000 in the first year, $400,000 in the second year, and $600,000 in the third year.  What is the internal rate of return (IRR) of this investment? (Round your answer to the tenths; enter your answer as a percent.)

You are considering the purchase of an investment that would pay you $5,000 per year for Years 1-5, $3,000 per year for Years 6-8, and $2,000 per year for Years 9 and 10. If you require a 14%, and the cash flows occur at the end of each year, what is the modified internal rate of return if the initial outlay is $10,000 and the cash flows are reinvested at the required rate of return?     14%   23%   28%   46%

Computing the Present Value of a Single Amount Depp is reviewing an investment that will provide a payout of $108,000 in five years. If Depp considers a 5% interest rate (compounded annually) acceptable, what amount is Depp willing to pay for the investment today? Round your answer to the nearest whole number. Do not use a negative sign with your answer.

Assume you invest $5,100 today in an investment that promises to return $6,928 in exactly 10 years. a. Use the​ present-value technique to estimate the IRR on this investment. b. If a minimum annual return of 9% is​ required, would you recommend this​ investment?       #69 Part 1 a. The IRR of the investment is enter your response here​%. ​(Round to the nearest whole​ percent.) Part 2 b. If a minimum return of 9% is​ required, would you recommend this​ investment?  ​(Select the best choice​ below.)     A. ​No, because this investment yields less than the minimum required return of 9%.   B. ​Yes, because a minimum required return of 9% does not compensate for an investment that lasts longer than one year.   C. ​No, because a minimum required return of 9% is an arbitrary choice for an investment of this risk level.   D. ​Yes, because this investment yields more than the minimum required return of 9%

You are considering a safe investment opportunity that requires a $1,410 investment today, and will p $780 two years from now and another $830 five years from now. a. What is the IRR of this investment? b. If you are choosing between this investment and putting your money in a safe bank account that pa an EAR of 5% per year for any horizon, can you make the decision by simply comparing this EAR wit the IRR of the investment? Explain. a. What is the IRR of this investment? The IRR of this investment is %. (Round to two decimal places.)

You have found an investment opportunity that will provide annual cash flows of $1,234 for 5 years and costs $6789 today. If the required return is 12%, what is the profitability index for this opportunity?

You are looking at an investment that will make annual payments of $28,000, $32,000, $66,000, and $99,000 to you each year over the next four years, respectively. All payments will be made at the end of the year. If the appropriate interest rate is 3.6 percent, what is the value of the investment offer today?

An investment will pay $150 at the end of each of the next 3 years, $200 at the end of Year 4, $400 at the end of Year 5, and $500 at the end of Year 6. If other investments of equal risk earn 4% annually, what is its present value? Its future value? Do not round intermediate calculations. Round your answers to the nearest cent. Present value: $ Future value: $

You have an opportunity to make an investment that will pay ​$   300 at the end of the first​ year, ​$   100 at the end of the second​ year, ​$   200 at the end of the third​ year, ​$   400 at the end of the fourth​ year, and   $500 at the end of the fifth year.   a.  Find the present value if the interest rate is   9 percent. ​ (Hint: You can simply bring each cash flow back to the present and then add them up.  Another way to work this problem is to either use the   =NPV function in Excel or to use your CF key on a financial calculator   —but ​you'll want to check your​ calculator's manual before you use this key.  Keep in mind that with the   =NPV function in​ Excel, there is no initial outlay.  That​ is, all this function does is bring all the future cash flows back to the present.  With a financial​ calculator, you should keep in mind that   CF0 is the initial outlay or cash flow at time​ 0, and, because there is no cash flow at time​ 0,   CF0   =​0.) b.  What would happen to the…

You are evaluating a growing perpetuity investment from a large financial services firm. The investment promises an initial payment of $24,900 at the end of this year and subsequent payments that will grow at a rate of 2.9 percent annually. If you use a 9 percent discount rate for investments like this, what is the present value of this growing perpetuity? (Round answer to 2 decimal places, e.g. 15.25.) Present value $ ?