Are there multiple IRRS for the following cash-flow sequence? How many are possible according to Descartes' ruleof signs? If e = 9% per year, what is the ERR for the cash flows of this project? Let MARR = 9% per yearEOYCash Flow ($)There is(are)0110A maximum of18025033054- 1,790 600IRR(S) for the given cash-flow sequenceIRR value(s) is(are) suggested by the Descartes' rule of signs.The ERR for the cash flows of this project is %. (Round to two decimal places)67500 4208330918010150

According to Descartes's rules of signs there can be as many IRRs as there are changes in signs (+…

Are there multiple IRRS for the following cash-flow sequence? How many are possible according to Descartes' rule of signs? If e-9% per year, what is the ERR for the cash flows of this project? Let MARR = 9% per year EOY Cash Flow ($) There is(are). 0 110 2 1 80 50 3 30 -1,790 *** 5 600 6 7 500 420 IRR(S) for the given cash-flow sequence A maximum of IRR value(s) is(are) suggested by the Descartes' rule of signs. The ERR for the cash flows of this project is % (Round to two decimal places) 8 330 9 180 10 150

Are there multiple IRRS for the following cash-flow sequence? How many are possible according to Descartes' rule of signs? If e-9% per year, what is the ERR for the cash flows of this project? Let MARR = 9% per year EOY Cash Flow ($) There is(are). 0 110 2 1 80 50 3 30 -1,790 *** 5 600 6 7 500 420 IRR(S) for the given cash-flow sequence A maximum of IRR value(s) is(are) suggested by the Descartes' rule of signs. The ERR for the cash flows of this project is % (Round to two decimal places) 8 330 9 180 10 150

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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Similar questions

Calculate/estimate the IRR(s) for a 6-year project with the following cash flows: CF0 = -50, CF1 =28 = CF2 = CF3 = CF4 = CF5, and CF6 = -93. In Excel, plot the NPV (= Y axis) against r (= discountrate), using r = 0%, 2%, and so on until you find all IRRs in the chart. Identify/estimate all IRRs.
An investment project has annual cash inflows of $3,50o, $4,400, $5,600, and $4,800, for the next four years, respectively. The discount rate is 14 percent. a. What is the discounted payback period for these cash flows if the initial cost is $6,200? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the discounted payback period for these cash flows if the initial cost is $8,300? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the discounted payback period for these cash flows if the initial cost is $11,300? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Discounted payback period a. years b. Discounted payback period years C. Discounted payback period years
Resnick Inc. is considering a project that has the following cash flow data. What is the project's payback? Year Cash flows O a. 1.44 years O b. 2.08 years O c. 2.92 years O d. 1.54 years e. 2.54 years O 0 -$500 $240 2 $240 3 $240
Determine the ERR for this project
Use the ERR method with ∈=8% per year to solve for a unique rate of return for the following cash-flow diagram. How many IRRs (the maximum) are suggested by Descartes’ rule of signs?
You are choosing between two projects. The cash flows for the projects are given in the following table ($ million): Project Year 0 Year 1 Year 2 Year 3 Year 4 - $51 - $102 $25 $19 $18 $40 $21 $48 $14 $59 A В a. What are the IRRS of the two projects? b. If your discount rate is 5.3%, what are the NPVS of the two projects? c. Why do IRR and NPV rank the two projects differently? a. What are the IRRS of the two projects? The IRR for project A is %. (Round to one decimal place.) The IRR for project B is %. (Round to one decimal place.) b. If your discount rate is 5.3%, what are the NPVS of the two projects? If your discount rate is 5.3%, the NPV for project A is $ million. (Round to two decimal places.) If your discount rate is 5.3%, the NPV for project B is $ million. (Round to two decimal places.) c. Why do IRR and NPV rank the two projects differently? (Select from the drop-down menus.) NPV and IRR rank the two projects differently because they are measuring different things. is…
Suppose a project has the following cashflows and the discount rate (required return) is 12%. t 0 1 2 3 4 5 $ Cash flow (30,000) 8,000 10,000 12,000 16,000 12,000 The project's discounted cumulative cashflow turns positive between year 3 and 4, to be precise it is 3.59 The project's discounted cumulative cashflow turns positive between year 3 and 4, to be precise it is 3.62 The project's discounted cumulative cashflow turns positive between year 3 and 4, to be precise it is 3.12 The project's discounted cumulative cashflow turns positive between year 4 and 5, to be precise it is 4.22
Thorley Inc. is considering a project that has the following cash flow data. The project's IRR is _______ %. Show 2 decimals!Year 0 1 2 3 4 5Cash Flows -$1,250 $325 $325 $325 $325 $325
A project has the following cash flows: Year Cash Flow 0 $ 37,000 1 -18,000 227,000 What is the IRR for this project? (Round the final answer to 2 decimal places.) IRR % What is the NPV of this project, if the required return is 11% ? ( Negative answer should be indicated by a minus sign. Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.) NPV $ What is the NPV of the project if the required return is 0% ? ( Negative answer should be indicated by a minus sign. Omit $ sign in your response.) NPV $ What is the NPV of the project if the required return is 22 % ? (Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.) NPV $
A project has the following cash flows set out below. What is the profitability index of this project if the relevant discount rate is 2 percent? Enter your final answer to two decimal places. Year Cash flow 0 -1,745 1 537 2 2,066 3 3,912
Consider the following cash flow profile and assume MARR is 10%/year. EOY NCF 0 -$100 1 $15 2 $15 3 $15 4 $15 5 $15 6 $15 Part a Determine the ERR for this project: % Carry all interim calculations to 5 decimal places and then round your final answer to 1 decimal place. The tolerance is ±0.2.
Consider cash flows Year 0: -6900 Y1: 1700 Y2: 2900 Y3: 2900 Y4: 3500 What is the profitability index for this project if the return is 10%

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