A cutting-edge product of Continental Fan had the following net cash flow series during its first 5-year period on the market. Find allrate of return values between 0% and 100%. (Round the final answer to three decimal places.)Year012345The rate of return is%.Net Cash Flow, $-42,00031,00023,00011,000-3,0007,000

When the cash flow direction changes more than once, there will be potential for more than one IRR.…

Answered: A cutting-edge product of Continental…

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

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The table below gives the expected cash inflows of a firm for a period of 9 years. Time 3 6 9 Cash inflow (£) 45000 90000 120000 Assume the present value of the cash outflows is £87000, and the applicable cost of capital is 13%. Calculate the (a) Future value of the cash inflows (b) Modified internal rate of return (MIRR)
Use the ERR method with = 10% per year to solve for a unique rate of return for the following cashflow diagram. How many IRRS (the maximum) are suggested by Descartes' rule of signs? The ERR is%. (Round to two decimal places.) A maximum of $45 IRR value(s) is(are) suggested by the Descartes' rule of signs. $220 $350 Enf of Year $190 Q MARR = 10%/yr
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A cutting-edge product of Continental Fan had the following net cash flow series during its first 5- year period on the market. Find all rate of return values between 0% and 100%. Year 0 1 2 3 4 5 The rate of return is %. Net Cash Flow, $ -44,000 33,000 24,000 13,000 -5,000 7,000
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Find the net present value (NPV) of the following cash flows when the discount rate is 7% pa: $60,000 immediately (t=0); $80,000 in 1.5 years (t=1.5); and $100,000 in 4.5 years (t=4.5). The net present value of these payments is: Select one: ○ a. $157,458.96 b. $206,031.23 c. $216,838.09 d. $240,000 e. $279,357.32
J7

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