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The Hudson Corporation makes an Investment of $68,100 that provides the following cash flow: 1 2 3 Cash Flow $34,000 34,000 22,000 Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. a. What is the net present value at a discount rate of 11 percent? (Do not round intermediate calculations and round your answer to 2 decimal places.) Net present value b. What is the internal rate of return? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Internal rate of return c. Would you make the same decision under both parts a and b? Yes O No

The Hudson Corporation makes an Investment of $68,100 that provides the following cash flow: 1 2 3 Cash Flow $34,000 34,000 22,000 Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. a. What is the net present value at a discount rate of 11 percent? (Do not round intermediate calculations and round your answer to 2 decimal places.) Net present value b. What is the internal rate of return? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Internal rate of return c. Would you make the same decision under both parts a and b? Yes O No

Essentials Of Investments
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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Both appendixes are the same so I just attached 1 (b)

The Hudson Corporation makes an Investment of $68,100 that provides the following cash flow: Lear 1 Cash Flow $34,000 34.000 22,000 Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. a. What is the net present value at a discount rate of 11 percent? (Do not round intermediate calculations and round your answer to 2 decimal places.) Net present value b. What is the internal rate of return? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Internal rate of return % c. Would you make the same decision under both parts a and b? Yes O No Semprev 5 at 9 BEE Next >
Transcribed Image Text:The Hudson Corporation makes an Investment of $68,100 that provides the following cash flow: Lear 1 Cash Flow $34,000 34.000 22,000 Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. a. What is the net present value at a discount rate of 11 percent? (Do not round intermediate calculations and round your answer to 2 decimal places.) Net present value b. What is the internal rate of return? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Internal rate of return % c. Would you make the same decision under both parts a and b? Yes O No Semprev 5 at 9 BEE Next >
The Hudson Corporation makes an Investment of $68,100 that provides the following cash flow: Lear 1 Cash Flow $34,000 34.000 22,000 Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. a. What is the net present value at a discount rate of 11 percent? (Do not round intermediate calculations and round your answer to 2 decimal places.) Net present value b. What is the internal rate of return? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Internal rate of return % c. Would you make the same decision under both parts a and b? Yes O No Semprev 5 at 9 BEE Next >
Transcribed Image Text:The Hudson Corporation makes an Investment of $68,100 that provides the following cash flow: Lear 1 Cash Flow $34,000 34.000 22,000 Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. a. What is the net present value at a discount rate of 11 percent? (Do not round intermediate calculations and round your answer to 2 decimal places.) Net present value b. What is the internal rate of return? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Internal rate of return % c. Would you make the same decision under both parts a and b? Yes O No Semprev 5 at 9 BEE Next >
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