Question

What is the IRR for a $1,325 investment that returns $225 at the end of each...

What is the IRR for a $1,325 investment that returns $225 at the end of each of the next 100 years?

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The IRR measures profit. It therefore measures return "on" investment and not capital recovery. However, any...
The IRR measures profit. It therefore measures return "on" investment and not capital recovery. However, any investment that returns more than it cost will be a profitable investment and will have an IRR that is both positive and measurable. Lets consider the following example. Suppose that you purchase an apartment complex at the beginning of Year 1 (or the end of Year 0) for $698. You expect to earn $15,000 per year for the next 4 years at the end...
Given the following expected cash flow stream, determine the IRR of the proposed investment in an...
Given the following expected cash flow stream, determine the IRR of the proposed investment in an income-producing property and determine whether or not the investment should be pursued using IRR as your decision-making criteria: investment horizon: five years; expected yearly cash flow in each of the next five years: $127,628; expected sale price at end of five years: $1,595,350; required return on equity: 5%; current market price of property: $1,750,000 Multiple Choice A. IRR is 5.72%; decision is to invest....
An investment will provide you with $100 at the end of each year for the next...
An investment will provide you with $100 at the end of each year for the next 10 years. What is the present value of that annuity if the discount rate is 8% annually? What is the present value of the above if the payments are received at the beginning of each year? If you deposit those payments into an account earning 8%, what will the future value be in 10 years? What will the future value be if you open...
And investment will pay $100 at the end of each of the next three years, $200...
And investment will pay $100 at the end of each of the next three years, $200 at the end of year 4, $300 at the end of year 5, and $500 at the end of year 6. If other investments of equal risk or an 8% annually, what is its present value.
What would you pay for an investment that pays you $25500 at the end of each...
What would you pay for an investment that pays you $25500 at the end of each year for the next twenty years? Assume that the relevant interest rate for this type of investment is 8%.
An investment will return $125 at the end of each month for 5 years and then...
An investment will return $125 at the end of each month for 5 years and then $250 at the end of each month for the next 3 years. What is the present value of the earnings on this investment calculated at the annual rate of 7.50% per year compounded monthly (0.625% per month)?
An investor pays $10,000 today to purchase an investment that returns $5,000 at the end of...
An investor pays $10,000 today to purchase an investment that returns $5,000 at the end of each of years 2, 4, and 5. The returns are immediately reinvested at an annual interest rate of 5%. Calculate the annual effective yield rate for the investor at the end of the fifth year. (a) 9.91% (b) 12.00% (c) 12.45% (d) 13.11% (e) 15.13%
An investment will pay $100 at the end of each of the next 3 years, $200...
An investment will pay $100 at the end of each of the next 3 years, $200 at the end of Year 4, $300 at the end of Year 5, and $500 at the end of Year 6. If other investments of equal risk earn 6% annually, what is its present value? Its future value? Do not round intermediate calculations. Round your answers to the nearest cent..
. Walt is evaluating an investment that will provide the following returns at the end of...
. Walt is evaluating an investment that will provide the following returns at the end of each of the following years: year 1, $12,500; year 2, $10,000; year 3, $7,500; year 4, $5,000; year 5, $2,500; year 6, $0; and year 7, $12,500. Walt believes that he should earn an annual rate of 7.5 percent on this investment. How much should he pay for this investment?
An investment will pay $100 at the end of each of the next 3 years, $300...
An investment will pay $100 at the end of each of the next 3 years, $300 at the end of Year 4, $600 at the end of Year 5, and $700 at the end of Year 6. 1. If other investments of equal risk earn 9% annually, what is its present value? Round your answer to the nearest cent. 2. What is its future value? Round your answer to the nearest cent.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT