A cutting-edge product had the following net cash flow series during its first 5-year period on the market. Assuming an investment rate of 22% and a borrowing rate of 14% per year. Which one of the following values is closest to the modified ROR (MIRR)? Year Net Cash Flow ($) Cumulative Cash Flow ($) -35,000 -35,000 1 32,000 -3,000 32,000 29,000 3 - 103,000 -74,000 32,000 - 42,000 5 117,000 75,000 Select one: a. 27 b. 18 с. 29 d. 21 e. 11 2.

A cutting-edge product had the following net cash flow series during its first 5-year period on the market. Assuming an investment rate of 22% and a borrowing rate of 14% per year. Which one of the following values is closest to the modified ROR (MIRR)? Year Net Cash Flow ($) Cumulative Cash Flow ($) -35,000 -35,000 1 32,000 -3,000 32,000 29,000 3 - 103,000 -74,000 32,000 - 42,000 5 117,000 75,000 Select one: a. 27 b. 18 с. 29 d. 21 e. 11 2.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Similar questions

For the nonconventional net cash flow series shown, the external rate of retuen per year usng the MRSR method, with an investment rate of 20% per year and a borowing rate of as per yeer, is closest to Year NCF.40.000-13.000-29.000-25.000S0.000
For the nonconventional net cash flow series shown, the external rate of return per year using the MIRR method, with an investment rate of 20% per year and a borrowing rate of 8% per year, is closest to: Year 1 2 -29,000 3 NCF, $ -40,000 +13,469 +25,000 +50,966
Assuming a 1-year, money market account investment at 2.122.12 percent (APY), a 0.810.81 percent inflation rate, a 3333 percent marginal tax bracket, and a constant $60 comma 00060,000 balance, calculate the after-tax rate of return, the real rate of return, and the total monetary return. What are the implications of this result for cash management decisions? Question content area bottom Part 1 Assuming a 1-year, money market account investment at 2.122.12% (APY), a 3333% marginal tax bracket, and a constant $ 60 comma 000$60,000 balance, the after-tax rate of return is enter your response here%. (Round to two decimal places.) Part 2 Assuming a 1-year, money market account investment at 2.122.12% (APY), a 3333% marginal tax bracket, and a constant $ 60 comma 000$60,000 balance, the after-tax monetary return is $enter your response here. (Round to the nearest dollar.) Part 3 Given an after-tax return of 1.421.42% and an inflation rate of…
The investment shown in the following figure has an annual equivalent worthof $200 at i = 8%. Determine the cash flows in periods 2, 3, 5 and 6.
For the cash flow shown below. Find the external rate of return (EROR) using the modified rate of return approach (MIRR), an investment rate of 15% per year, and a borrowing rate of 8% per year. Year 3 4 NCF,$ -9000 +4100 -2000 -7000 +12000 +700 +800 Select one: O a. 7.9% Ob.9.9% O c. 5.9% O d. 11.9%
s. Subect :- Accounting
An arithmetic cash flow gradient series equals $600 in year 1, $800 in year 2, and amounts increasing by $200 per year through year 5. At i = 6% per year, determine the factor from the compound interest factor table that is used to calculate the equivalent annual worth of the revenue through year 5. Multiple choice question. A. 4.212 B. 5.637 C. 1.884 D. 7.934
A $1,000 investment in project that returns $100/year for 5 years is to be compared with a $700 investment in a project that returns $90/year for 4 years. What would be a good metric(s) for comparing these projects? A. Equivalent uniform annual cash flow, only. B. Internal rate of return (only correct choice of these options) C. Internal rate of return and equivalent uniform annual cash flow D. Benefit to cost ratio and internal rate of return E. Benefit to cost ratio (only correct choice of these options) Give answer fast and only type answer
Perez Company is considering an investment of $20,957 that provides net cash flows of $6,900 annually for four years. (a) What is the internal rate of return of this investment? (PV of $1, FV of $1, PVA of $1, and FVA of $1) Note: Use appropriate factor(s) from the tables provided. Round your present value factor to 4 decimals. (b) The hurdle rate is 9%. Should the company invest in this project on the basis of internal rate of return? Complete this question by entering your answers in the tabs below. Required A Required B What is the internal rate of return of this investment? Present value factor Internal rate of return % Required A Required B
A company is planning to expand its business is costing OMR 19252. The following cash inflows are expected. Calculate Profitability index given the rate of discounting to be 3.008% Years Machine A 12396 13300 12500 4 14500 2. 3.
6. A report from the marketing department indicates that a new product will generate the following revenue stream: P62,500 in the first year, P89,400 in year two, P136,200 in year three, P128,300 in year four, and P112,000 in year five. If your firm's discount rate is 11% and the cash flows are received at the end of each year, what is the present value of this cash flow stream? a.P379,435.35b.P421,173.24c.P476,036.04d.P528,400.00
a) How many possible rate of returns b) If the reinvestment ratec 15%, find the composite rate of return. Year 1 Net Cash Flow -10,000 +15,000 +5,000 -7,000

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS