An initial investment of £80,000 has an interim return of £30,000 in year 5 and a final return of £100,000 in year 10. Find the internal rate of return (IRR) to the nearest %.
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- For each of the following scenarios, state whether an incremental investment analysis is required to select an alternative and state why or why not. Assume that alternative Y requires a larger initial investment than alternative X and that the MARR is 20% per year.a. X has i* = 22% per year, and Y has i* = 20% per year.b. X has i* = 19% per year, and Y has i* = 21% per year.c. X has i* = 16% per year, and Y has i* = 19% per year.d. X has i* = 25% per year, and Y has i* = 23% per year.e. X has i* = 20% per year, and Y has i* = 22% per year.Suppose an investment has an initial capital cost of $1100, an ongoing cost of $6.50 per year and an annual benefit of $80. If the project lasts for 20 years and the discount rate is 7%, the internal rate of return is: Provide your answer in percentage form (e.g. an IRR of 17.66% should be entered as 17.66) to 2 decimal places. Do not include any $ or % 's in your response.Calculate the geometric (average) return over the 5-year investment period. Year Price 0 19 1 22 2 20 3 23 4 25 5 27 Round your answer to 4 decimal places. For example, if your answer is 3.205%, then please write down 0.0321.
- A present investment of tk 500,000 is expected to yield receipts of tk70, 000 a year for 15 years. What is the appropriate rate of return that will be obtained on this investment? (Hint: apply linear interpolation if necessary).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 percentThe initial investment amount of an investment is 800 Million TL and the expected net cash flows for five years from the investment is 30% of this amount. If the risk- free rate (rf) is 12% and the firm's lowest expected rate of return (ri) on its investments is 17%, find the net present value of this investment using the equal-determination method. Show your calculations clearly.
- a) The initial outlay of the investment is €125,000. The income stream is €30,000 in year 1, €55,000 in year 2, €60,000 in year 3 and €70,000 in year 4. What is the net present value of the investment at 18% discount rate? b) What is the IRR of the aforementioned investment? c) Using the DCF approach requires some forecasting of the future – How can this. be done?An initial investment of £10,000 has a return of £12,000 after five years. Assuming an annual discounting rate of 3%, calculate the net cash flow (NCF) and net present value (NPV). • state the NCF (to the nearest £) • state the NPV (to the nearest £) • state which is the most appropriate measure for this investment briefly explain your choice7. Find the IRR of an investment of 50,000 ETB, whose receipts in the next four years are ETB 15,000, ETB 15,00o0, ETB 20,000 and ETB 20,000 respectively. Is the investment viable if the minimum attractive rate of return (MARR) is 10% per annual?
- a) The initial outlay of the investment is €125,000. The income stream is €30,000 in year 1, €55,000 in year 2, €60,000 in year 3 and €70,000 in year 4. What is the net present value of the investment at 18% discount rate? b) What is the IRR of the aforementioned investment? c) Using the DCF approach requires some forecasting of the future – How canthis. be done?Q1 (A). An investment of $100 produces rate of return as follows In year 1: a gain of 10 percent In year 2: a loss of percent In year 3: a loss of 8 percent In year 4: a gain of 3 percent. Calculate the value of the investment at the end of the fourth year and calculate the mean annual rate of return.An investment under consideration has a payback of seven years and a cost of $685,000. Assume the cash flows are conventional. If the required return is 11 percent, what is the worst-case NPV? What is the best case NPV?