Determine the rate of return per year for the cash flow series shown below.Year Cash Flow, $-$100,0001-$9,000$45,0003$55,0004$75,000Between 12% and 13%Between 19% and 20%Between 16% and 17%Between 10% and 11%Between 14% and 15%

Internal rate of return is one of the modern techniques of capital budgeting that take into…

Answered: Determine the rate of return per year…

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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Assume that an investment provides the following cash inflows over a three-year period: Year 1 Year 2 Year 3 Total $5,000 5,000 7,000 $ 17,000 Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables provided. Assuming a discount rate of 17%, what is the present value of these cash inflows?
What is the present value of the following set of cash flows at an interest rate of 8% p.a. compounded annually? End of Year 1 $1,150 End of Year 2 $2,300 End of Year 3 $5,100 Select one: a. $7,401.20 b. $7,085.23 c. $8,550.00 d. $7,805.23
None
Assume that an Investment provides the following cash Inflows over a three-year perlod: Year 1 $ 5,000 Year 2 5,000 Year 3 7,000 $ 17,000 Total Click here to vlew Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables provided. Assuming a discount rate of 11%, what is the present value of these cash Inflows? Multiple Cholce $13,682 $12.882 $11,982 $13,282
Determine the present equivalent value of the cash-flow diagram of the shown figure, when the annual interest rate, ik, varies as indicated.
a) How many possible rate of returns b) If the reinvestment ratec 15%, find the composite rate of return. Year 1 Net Cash Flow -10,000 +15,000 +5,000 -7,000
Calculate the internal rate of return for a $300.0m cash outflow at the end of year 0 and a $716.0m cash inflow at the end of year 5. 16% 20% 18.5% 19%
What is the future value at the end of year three of the following set of cash flows at an interest rate of 10% p.a. compounded annually? End of Year 1 $5,100 End of Year 2 $2,300 End of Year 3 $1,150 Select one: a. $8,550 b. $9,966 c. $9,851 d. $9,581
Solve it correctly please. I
What is the most you should pay to receive the following cash flows if your required rate of return is 10 percent? Year 1-3 $5,000 Year 4-6 Year 7-9 Years 10 $46,878.34 O $50,009.84 $40,639.31 $55,687.75 $52,439.73 $47,202.31 $8,000 $12,000 $15,000
Cash Flow Series B Cash Flow Series C -$2,330 $2,870 $2,470 $2,070 $1,670 $1,270 Y Y Y - 2Y 2Y 2Y
For the value of P shown, what is the NPV for the cashflow? S1,000 5% Value of P Rate Year Cash Flow 0-12P 1$0 2$5,000 3$7,500 4+5P 5+2P 6+P $9,701 $14,037 $5,440 $7,500

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Determine the rate of return per year for the cash flow series shown below. Year Cash Flow, $ -$100,000 1 -$9,000 $45,000 3 $55,000 $75,000 Between 12% and 13% Between 19% and 20% Between 16% and 17% Between 10% and 11% Between 14% and 15% 4.