Are there multiple IRRs for the following cash-flow sequence? How many are possible according to Descartes' rule of signs? If ε = 9%per year, what is the ERR for the cash flows of this project? Let MARR = 9% per year.ΕΟΥ012Cash Flow ($) 120 90 503204- 1,81055806510There is (are) multiple IRR(s) for the given cash-flow sequence.A maximum of two 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.)74108330918010110

Multiple IRR is a situation when the investment generates an NPV of $0 for more than one required…

Are there multiple IRRs for the following cash-flow sequence? How many are possible according to Descartes' rule of signs? If & = 9% per year, what is the ERR for the cash flows of this project? Let MARR = 9% per year. ΕΟΥ 0 1 Cash Flow (S) 120 90 There is (are) multiple IRR(s) for the given cash-flow sequence. A maximum of two 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.) 2 50 3 20 4 5 - 1,810 580 6 510 7 410 8 330 9 180 10 110

Are there multiple IRRs for the following cash-flow sequence? How many are possible according to Descartes' rule of signs? If & = 9% per year, what is the ERR for the cash flows of this project? Let MARR = 9% per year. ΕΟΥ 0 1 Cash Flow (S) 120 90 There is (are) multiple IRR(s) for the given cash-flow sequence. A maximum of two 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.) 2 50 3 20 4 5 - 1,810 580 6 510 7 410 8 330 9 180 10 110

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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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?
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?
A project has the following cashflows. The project's cumulative cashflow turns positive between year 4 and 5, to be precise it is 4.22. Your further analysis indicates that you are too conservative about the cash flows for Year 1 and 2. You expect both cash flows to be at least $1000 higher, if not more :) How will this affect your calculation of the precise time when the cumulative cashflow turns positive? t 0 ON 35 67 2 4 $ Cash flow (250,000) 41,000 48,000 63,000 79,000 88,000 64,000 41,000 Changes. The project's cumulative cashflow turns positive a bit earlier. Changes. The project's cumulative cashflow now turns positive a lot later. Changes. The project's cumulative cashflow now turns positive a bit later. No change. The project's cumulative cashflow still turns positive between year 4 and 5, to be precise it is 4.22.
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 0 $45 IRR value(s) is(are) suggested by the Descartes' rule of signs. $220 1 2 $350 Enf of Year $190 MARR = 10%/yr
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 $15 Part a Determine the ERR for this project: % Carry all interim calculations to 5 decimal places and then round your final answer to 1 decimal place. The tolerance is ±0.2.
Consider cash flows Year 0: -6900 Y1: 1700 Y2: 2900 Y3: 2900 Y4: 3500 What is the profitability index for this project if the return is 10%
Find the value of the unknown quantity, P0, that establishes equivalence in the cash-flow diagram below. Suppose i = 20% per year. Use an annuity factor and a uniform gradient factor in your solution.
For the given cash flows, suppose the firm uses the NPV decision rule. Year Cash Flow 0-$ 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?
An investment project has annual cash inflows of $4,400, $3,900, $5,100, and $4,300, 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 $5,700? (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 $7,800? (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 $10,800? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Discounted payback period years b. Discounted payback period years C. Discounted payback period years
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.

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