(IRR calculation) Determine the IRR on the following projects: a. An initial outlay of $11,000 resulting in a single free cash flow of $16,992 after 9 years b. An initial outlay of $11,000 resulting in a single free cash flow of $53,871 after 14 years c. An initial outlay of $11,000 resulting in a single free cash flow of $110,943 after 24 years d. An initial outlay of $11,000 resulting in a single free cash flow of $13,692 after 5 years a. What is the IRR of a project with an initial outlay of $11,000 resulting in a single free cash flow of $16,992 after 9 years? % (Round to two decimal places.)

(IRR calculation) Determine the IRR on the following projects: a. An initial outlay of $11,000 resulting in a single free cash flow of $16,992 after 9 years b. An initial outlay of $11,000 resulting in a single free cash flow of $53,871 after 14 years c. An initial outlay of $11,000 resulting in a single free cash flow of $110,943 after 24 years d. An initial outlay of $11,000 resulting in a single free cash flow of $13,692 after 5 years a. What is the IRR of a project with an initial outlay of $11,000 resulting in a single free cash flow of $16,992 after 9 years? % (Round to two decimal places.)

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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Investment A is expected to generate after-tax cash flows of $5,000 per year for 6 years and will require an initial cash outlay of $23,000. Investment B is expected to generate after-tax cash of $6,000 per year for 5 years and will require an initial cash outlay of $21,000. What is the cross-over rate? IA ON
Assignment equipment, the useful life of which is four years. The net cash flows for the two projects are provided in the table below: Net Cash Flow (GH¢) Project Year 1 Year 2 Year 3 Year 4 1 2,550 2,450 1,700 1,400 1,240 1,550 2,100 3,800 end of its life. i. Find the payback period for each project. Establish the net present value for each project using discount rate of 20%. Establish the net present value for each project using discount rate of 25%. Determine the internal rate of return for each project. iii. iv. Using the payback criterion and the internal rate of return criterion advice the proprietor on the project he should undertake, giving reasons for your choice of project. V. 70
The Butler-Perkins Company (BPC) must decide between two mutually exclusive projects. Each Project has an initial after-tax cash outflow of $6,500 and has an expected life of 3 years. Annual project after-tax cash flows begin 1 year after the initial investment and are- Subject to the following probability distributions. Project A Project B Probability Cash Flows 0:2 27 Probability 0.2 VOU J Cash Flows TO $6,250 0.6 6,300 0.6. 19,000 0.2. 6,750 0.2 BPC has decided to evaluate the riskier project at 12%. and the less-risky project at 8% a) What is each project's expected annual after tax- Cush flow? Round your answers to the nearest cent. Project A: $ 200 BOLL Project B: I 5/07 Project B's standard deviation (013) is $6,185 and its coefficient of variation (CVB) is 0.80, What are the values of OA and CVA? Do not rand) intermediate calculations. Rand your answer for Standard deviation to the nearest cent and for coefficient of variation to two decimal places. σε: J CVA 6,500
If the cost of a project is $50,000 and the cash inflows are as given in the table below, what is the payback period for the project? Year CF $12,000 $15,000 3 $18,000 4 S20,000 $25,000 3.0 years O 2.75 years (3.25 years 4.5 years 4.0 years
A project has estimated annual net cash flows of $63,800. It is estimated to cost $740,080. Determine the cash payback period. Round the answer to one decimal place.____________ years
Payback period. What are the payback periods of projects E and F? Assume all the cash flow is evenly spread throughout the year. If the cutoff period is three years, which project(s) do you accept? Cash Flow E F Cost $40,000 $95,000 Cash flow year 1 $10,000 $19,000 Cash flow year 2 $10,000 $9,500 Cash flow year 3 $10,000 $38,000 Cash flow year 4 $10,000 $28,500 Cash flow year 5 $10,000 $0 Cash flow year 6 $10,000 $0
(Related to Checkpoint 11.4) (IRR calculation) Determine the internal rate of return on the following project: An initial outlay of $9,500 resulting in a cash inflow of $1,600 at the end of year 1, $4,700 at the end of year 2, and $7,800 at the end of year 3. This project's internal rate of return is %. (Round to two decimal places.)
Vijay
Payback period. Given the cash flow of two projects—A and B—and using the payback period decision model, which project(s) do you accept and which project(s) do you reject if you have a three-year cutoff period for recapturing the initial cash outflow? For payback period calculations, assume that the cash flow is equally distributed over the year. Cash Flow A B Cost $14,000 $110,000 Cash flow year 1 $5,600 $44,000 Cash flow year 2 $5,600 $33,000 Cash flow year 3 $5,600 $22,000 Cash flow year 4 $5,600 $11,000 Cash flow year 5 $5,600 $0 Cash flow year 6 $5,600 $0
D. Cómpute the Pay-back period for a project that costs Sh.80,000 and yields the following cash flows for 5 years. Year 1 3 4. 5. Cash flows 10,000 30,000 15,000 20,000 30,000
A project has cash flows of -$148,000, $43,000, $87,000, and $44,000 for Years 0 to 3, respectively. The required rate of return is 11 percent. Based on the internal rate of return of the project. percent for this project, you should
Compute the payback statistic for Project A if the appropriate cost of capital is 7 percent and the maximum allowable payback period is four years. (Round your answer to 2 decimal places.) Project A Time: 0 1 2 3 4 5 Cash flow: −$1,400 $510 $600 $600 $380 $180 Payback years: _______.__

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