Are there multiple IRRs for the following cash-flow sequence? How many are possible according to Descartes rule of signs? -11% per year, what is the ERR for the cash flows of this project? Let MARR 11% per year There is(are) EOY 0 Cash Flow (5) 110 1 80 2 3 50 20 4 -1.840 IRR(S) for the given cash-flow sequence A maximum of IRR value(s) is(are) suggested by the Descartes' nule of signs The ERR for the cash flows of this project is (Round to two decimal places) 5 560 6 520 7 370 8 340 9 190 10 140

Are there multiple IRRs for the following cash-flow sequence? How many are possible according to Descartes rule of signs? -11% per year, what is the ERR for the cash flows of this project? Let MARR 11% per year There is(are) EOY 0 Cash Flow (5) 110 1 80 2 3 50 20 4 -1.840 IRR(S) for the given cash-flow sequence A maximum of IRR value(s) is(are) suggested by the Descartes' nule of signs The ERR for the cash flows of this project is (Round to two decimal places) 5 560 6 520 7 370 8 340 9 190 10 140

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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es A project has the following cash flows: Year Cash Flow 0 -$ 17,200 1 7,900 2 9,200 3 7,700 a. What is the NPV at a discount rate of zero percent? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b. What is the NPV at a discount rate of 12 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the NPV at a discount rate of 22 percent? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) d. What is the NPV at a discount rate of 28 percent? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. NPV b. NPV c. NPV d. NPV
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?
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
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 $
There is a project with the following cash flows : Year Cash Flow 0 −$ 23,350 1 6,300 2 7,400 3 8,450 4 7,350 5 5,900 What is the payback period?
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.
Suppose a project has the following cash flows. What is the NPV if the cost of the project is $105,000 and the required return is 9.75%? Year Cash Flow $28.000 32,000 3 36,000 4 39,000 O$6,000 O $20,678 $1,193 $27,335 O $30,000 Page 16 of 30
For the given cash flows, suppose the firm uses the NPV decision rule. Year Cash Flow 0-$ 150,000 1 66, 000 2 73,000 3 57,000 a. At a required return of 10 percent, what is the NPV of the project? b. At a required return of 20 percent, what is the NPV of the project?
calculate cash flow if NPV = Initial Investment 0, Period 2000000 = 10 years, discounted rate = 12%,
Consider the following cash flow profile and assume MARR is 10%/year. EOY NCF Part a Determine the ERR for this project. 0 1 2 3 4 5 6 % -$50 $32 $32 $32 $32 $32 $32 Carry all interim calculations to 5 decimal places and then round your final answer to 1 decimal place. The tolerance is ±0.2.
Consider the following cash flow profile and assume MARR is 10%/year. EOY NCF Part a Part b Part c Determine the IRR for this project. 0 1 2 3 4 5 6 % $-140 $60 $60 $30 $-10 $50 $60 Carry all interim calculations to 5 decimal places and then round your final answer to 1 decimal place. The tolerance is ±0.2.
Project A costs $41425 and has a WACC of 13%. It expected net cash inflows are as follows: Year: 0 1 2 3 4 5 6 CF: 9000 8000 9000 12000 10000 18000 What is the projects MIRR?

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