Question

For a one-year project with an investment of $1000 and a MARR = 12%, the PW...

For a one-year project with an investment of $1000 and a MARR = 12%, the PW of this project is $150. How much is the internal rate of return (IRR) of this project?

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Consider the three mutually exclusive projects that follow. The​ firm's MARR is 9​% per year. EOY  ...
Consider the three mutually exclusive projects that follow. The​ firm's MARR is 9​% per year. EOY   Project 1    Project 2 Project 3 0 −​$10,000 −​$9,000 −​$10,000 1−3 ​$5,130.54 ​$4,713.45 ​ $4,926.60 a. Calculate each​ project's PW. PW1 =​$___________(Round to the nearest​ dollar.) PW2=​$____________​(Round to the nearest​ dollar.) PW3=​$____________​(Round to the nearest​ dollar.) b. Determine the IRR of each project. IRR1=_________​%.​(Round to one decimal​ place.) IRR2=_________​%.​(Round to one decimal​ place.) IRR3=_________​%.​(Round to one decimal​ place.) c. Which project would you​...
A project requires an immediate investment of $20,000, and an additional investment of $10,000 in one...
A project requires an immediate investment of $20,000, and an additional investment of $10,000 in one year.It will generate an annual profit of$8000 in Years 2 to 8,and have a residual value of$5000 at the end of the eighth year. Calculate the project’s internal rate of return. Should the project be undertaken if the firm’s cost of capital is 14%? Find the Internal Rate of Return ( IRR ) and decide based upon the cost of capital ( 14% )
Consider the independent investment projects in the table below. MARR=9​% per year.        Project Cash...
Consider the independent investment projects in the table below. MARR=9​% per year.        Project Cash Flows   n   A   B   C 0   -$250   -$120   $135 1   $50   $70   -$45 2   $50   $70   -$45 3   $50   $70   -$45 4   -$125   $30   5   $500   $30   6   $500       MARR=13​% per year. ​(a) For a MARR of 9​%, compute the net present worth for each​ project, and determine the acceptability of each project. Select the correct choices from the​ drop-down menus below and...
“Consider the following investment project: n Net Cash Flow 0 -$1000 1 $1400 2 -$100 The...
“Consider the following investment project: n Net Cash Flow 0 -$1000 1 $1400 2 -$100 The firm’s MARR is 12%. One i* is 32.45%. Showing all calculations, compute the other i*, find the project’s true IRR, and determine the acceptability of this project.”
t/f The minimum attractive rate of return (MARR) for a business is independent of the internal...
t/f The minimum attractive rate of return (MARR) for a business is independent of the internal rate of return (IRR) of an investment.
For the project shown below , if MARR is 12% , answer the following : (a)...
For the project shown below , if MARR is 12% , answer the following : (a) Draw cash-flow diagram (b) What is the simple payback period (c) Calculate the discounted payback period (d) Is the projecr acceptable? Using IRR method - Investment = $15,000 - Expected life = 6 years - Saving (SV) = $ 2000 - Annual receipts ( returns ) = $ 11,000 - Annual expenses = $ 6000
Variables Project   236 Project   264   Interest   Rate 12.5% 12.5% MARR 15% 15% Project   Life   (years) 15...
Variables Project   236 Project   264   Interest   Rate 12.5% 12.5% MARR 15% 15% Project   Life   (years) 15 15 Cash   Flows/Year   0 (64,000) (58,000) 1 12,500 11,589   2 12,500 11,995      3 12,500 12,414 4 12,500 12,849 5 12,500 13,299   6 12,500 13,764   7 12,500 14,246   8 12,500 14,744   9 12,500 15,260   10 12,500 15,795   11 12,500 16,347   12 12,500 16,920 13 12,500 17,512   14 12,500 18,125   15 12,500 18,759   ACB Manufacturing   is   analyzing   investment   decisions.   Two   projects   are   evaluated   using   the  ...
(a) Explain why investment appraisal methods based on project cash flows are regarded as superior to...
(a) Explain why investment appraisal methods based on project cash flows are regarded as superior to earnings-based measures such as forecasted return on assets. (120 words) (b) Compare the merits of the net present value (NPV), internal rate of return (IRR) and discounted payback period methods of capital investment project appraisal, assuming the firm’s objective is to maximise the wealth of its equityholders. What conditions must apply for the net present value (NPV) and internal rate of return (IRR) methods...
Grey company is analyzing a project that requires an initial investment of $600,000. The project's expected...
Grey company is analyzing a project that requires an initial investment of $600,000. The project's expected cash flows are: (Year 1) $350,000, (Year 2) -$125,000, (Year 3) $500,000 and (Year 4) $400,000. 1. Grey company's WACC is 10%, and the project has the same risk as the firm's average project. Calculate this project's modified internal rate of return (MIRR): _______%. 2. If Grey company's managers select projects based on the MIRR criterion, they should accept or reject this independent project....
Compare the alternatives using IRR (internal rate of return) method. MARR is 11% per year. Alternative...
Compare the alternatives using IRR (internal rate of return) method. MARR is 11% per year. Alternative 1 Alternative 2 First cost 176360 268330 Annual revenue 23960 19450 Salvage value 22310 30240 Life, years ∞ ∞ in excel please!!
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT