Nikul What is the internal rate of return (IRR) for an investment with the following cash flows?Cash Flow($46,500)$12,200Year@123Multiple ChoiceO$38,400$11,300O4.48%7.67%16.33%None of the options are correct.

Name: Nikul What is the internal rate of return (IRR) for an investment with
Uploaded: 2024-03-20T06:50:59.000Z
Channel: Bartleby
Description: Nikul What is the internal rate of return (IRR) for an investment with the following cash flows?Cash Flow($46,500)$12,200Year@123Multiple ChoiceO$38,400$11,300O4.48%7.67%16.33%None of the options are correct.

IRR stands for Internal Rate of Return. It is a financial metric used to evaluate the profitability…

Business

Finance

What is the internal rate of return (IRR) for an investment with the following cash flows? Year @12m 3 Multiple Choice O Cash Flow ($46,500) $12,200 $38,400 $11,300 O 4.48% 7.67% 16.33% None of the options are correct.

What is the internal rate of return (IRR) for an investment with the following cash flows? Year @12m 3 Multiple Choice O Cash Flow ($46,500) $12,200 $38,400 $11,300 O 4.48% 7.67% 16.33% None of the options are correct.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 13MC: Which of the following discounts future cash flows to their present value at the expected rate of...

See similar textbooks

Similar questions

Consider an investment where the cash flows are: – $946.21 at time t = 0 (negative since this is your initial investment) $377 at time t = 1 in years $204 at time t = 2 in years $499 at time t = 3 in years (a) Use Excel's "Solver" to find the internal rate of return (IRR) of this investment. Take a screen shot showing Solver open with your entries for the function clearly visible. Paste the screen shot into an application (like Paint), and save it as a (.png) file. Upload your screenshot below. (b) What is the value of IRR found by Solver?
Pls help answer this without Excel. I got this incorrect. A real estate investment has the following expected cash flows: YEARCASH FLOW0-$108,262.001$11,543.002$29,042.003$51,281.004$41,065.00 The investor wants a 6.00% return on this investment. What is the NPV of this opportunity? Answer format: Currency: Round to: 2 decimal places.
Calculate the HPR of the following investment, entered as a percentage (Example: if your answer is 14.5%, enter 14.5 and not 0.145) Period Cashflow 0 -14100 1 3300 2 3300 3 3100 4 2800
Problem #2: Consider an investment where the cash flows are: - $920.33 at time 1 = 0 (negative since this is your initial investment) S407 at time = 1 in years $222 at time = 2 in years $426 at time = 3 in years (a) Use Excel's "Solver" to find the internal rate of return (IRR) of this investment. Take a screen shot showing Solver open with your entries for the function clearly visible. Paste the screen shot into an application (like Paint), and save it as a (.png) file. Upload your screenshot below. (b) What is the value of IRR found by Solver?
The possible rates of return of two assets, A and B, under different economic conditions are given below: Economic Situation Probability Return of Asset A Return of Asset B Recession 0.2 10% 6% Stable 0.5 14% 15% Growth 0.3 20% 11% An investor places 50% of his funds in Asset A and 50% in Asset B. [Note: you may use correlation between A and B as 0.2401] Required: (i)Calculate the risk and expected return for each asset. (ii)Calculate the risk and expected return of the investor’s 2-assets portfolio. (iii) What do you understand by total risk?
You are asked to evaluate an investment project with the following cash flows: Year 1 234. 2 4 Cash Flow $800 1,090 1,350 1,475 a. If the discount rate is 7 percent, what is the present value of these cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the present value at 17 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the present value at 25 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Present value at 7% b. Present value at 17% c. Present value at 25% $ 3,926.98
H1. Account
The five alternatives shown below are being evaluated by the rate of return method. Incremental ROR when compared with alternative B C D 27.3 9.4 35.3 25 E 1.5 38.5 24.4 Alt B D E Initial Invest, $ ROR vs DN,% 9.6 15.1 -25,000 -35,000 -40,000 -60,000 -75,000 13.4 25.4 20.2 A --- --- (d) Alt D 46.5 27.3 6.8 ... If the projects are mutually exclusive and the Minimum Attractive Rate of Return is 9.2% per year, the best alternative is: (a) Alt A (b) Alt B (c) Alt C (e) Alt E
internal rate of return (IRR) ▼ Hide Feedback Correct Quantitative Problem: You own a security with the cash flows shown below. 0 1 $ Hide Feedback Incorrect 0 630 375 270 If you require an annual return of 10%, what is the present value of this cash flow stream? Do not round intermediate calculations. Round your answer to the nearest cent. h f6 Q Search 6 Y H N 2 Check My Work Feedback Review the general PV equation for valuing an asset with an uneven cash flow stream. f7 If using a financial calculator, be careful to enter zero for CFo. Otherwise, your present value calculation will be overstated. & 87 using the IRR U f8 * B DHOMO + 8 T K fg 4 < 300 hp 144 key. 9 f10 99+1 O V f11 0 a CS 9x W f12 ? + L ins prt sc ] delete backspace 1 pause home num lock enter
Question 2 You must choose between two investments, X and Y . The profitability index (PI), net present value (NPV) and internal rate of return (IRR) of the two investments are as follows: Criteria Investment X Investment Y NPV R44 000 −R22 000 PI 1,945 0,071 IRR 16,00% 8,04% Which investment(s) should you choose, taking all the above criteria into consideration, if the cost of capital is equal to 12% per year? [1] X [2] Y [3] Both X and Y [4] Neither X nor Y [5] Too little information to make a decision 17 DSC1630
Benefits of diversification. What is the expected return of investing in asset M alone?
Computing Present and Future Values Under Different Assumptions Determine the unknown variables in each of the four separate investment scenarios. Round the RATE to one percentage point (for example, enter 8.5 for 8.54444%). Round NPER, PV, and PMT to the nearest whole number. Use a negative sign only for an amount related to PMT. Investment 1 Investment 2 Investment 3 Investment 4 RATE Answer 7% 6% 1% NPER 10 Answer 4 24 PV $216,000 $9,000 Answer $21,600 PMT $(35,000) $(2,300) $(16,200) Answer TYPE End of period Beg. of period End of period Beg. of period