Question

What is the IRR of an investment that costs $18,500 and pays $5,250 a year for...

What is the IRR of an investment that costs $18,500 and pays $5,250 a year for 5 years?

please show steps in excel

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Calculations-

Please upvote if the ans is helpful.In case of doubt,do comment.Thanks.

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
What is the approximate IRR for a project that costs $100,000 and provides cash inflows of...
What is the approximate IRR for a project that costs $100,000 and provides cash inflows of $30,000 for 6 years? Please show the steps on a financial calculator!
An investment pays out $20,000 at the end of the year, followed by payments of $30,000,...
An investment pays out $20,000 at the end of the year, followed by payments of $30,000, $40,000, and $50,000 at the end of the subsequent years. Yields in the market are expected to steadily increase. The discount rate for the first year is 6%, for the second year is 7%, for the third year is 8%, and for the fourth year is $9%. How much would you be willing to pay for this investment? Please show all calculations in excel!
An investment of $ 18,500 amounts to $ 27,930 in three years. How many quarters must...
An investment of $ 18,500 amounts to $ 27,930 in three years. How many quarters must pass to accumulate $ 30,000? What is the nominal rate payable six times a year on this investment?
An investment costs $465 and is expected to produce cash flows of $100 at the end...
An investment costs $465 and is expected to produce cash flows of $100 at the end of each of the next 4 years, then an extra lump sum payment of $200 at the end of the fourth year. What is the expected rate of return on this investment? Please show me how to work this problem on Excel. Thank you.
Floyd is now working on a job that pays $35,000 per year. He is contemplating a...
Floyd is now working on a job that pays $35,000 per year. He is contemplating a full-time one-year automobile mechanics course that entails costs of $15,000 for books and tuition (Note: he will not be able to work at all while he is studying). Floyd estimates that the course will increase his income to $50,000 in each of the three years following completion of the course. At the end of those three years, Floyd plans to retire to a commune...
Calculate the NPV, IRR and the Modified IRR using all three methods and the cash flows...
Calculate the NPV, IRR and the Modified IRR using all three methods and the cash flows below. The reinvestment rate/required rate is 11%. Do not use excel. May use HP 10llb+ calculator but show steps. YEAR 0 1 2 3 4 5 ORIGINAL CASH FLOWS -12,000 ; 2,400 ; 6,000 ; -5,000 ; -3,000 ; 24,000
14.a You bought an annuity that pays $1,000 at the (a) end and (b) beginning of...
14.a You bought an annuity that pays $1,000 at the (a) end and (b) beginning of each year next 5 years. If you can earn 6% on your money in other investments with equal risk, the future value (FV) of this kind of annuity is (a) $(                      ) or (b) $(                       _). 14.b You bought an annuity that pays $1,000 at the (a) end or (b) beginning of each year for 5 years. If you can earn 6% on your...
What is the value of a dividend stock that pays a dividend of: year 1 $3...
What is the value of a dividend stock that pays a dividend of: year 1 $3 year 2 $3 year 2 $3.25 Then will grow at 1% thereafter. The WACC is 7% and the cost of equity is 9%. Please show details of each step in Excel format.
Using the Payback Method, IRR, and NPV Problems Purpose of Assignment The purpose of this assignment...
Using the Payback Method, IRR, and NPV Problems Purpose of Assignment The purpose of this assignment is to allow the student to calculate the project cash flow using net present value (NPV), internal rate of return (IRR), and the payback methods. Assignment Steps Resources: Corporate Finance Calculate the following time value of money problems in Microsoft Excel or Word document. You must show all of your calculations. If you want to accumulate $500,000 in 20 years, how much do you...
Firm ABC is considering to invest in a project to reduce costs by $70,000 annually. The...
Firm ABC is considering to invest in a project to reduce costs by $70,000 annually. The equipment costs $200,000, had a 4-year life (will be depreciated as a 3-year MACRS asset), requires no additional investment in net working capital, and has a salvage value of $50,000. The firm’s tax rate is 39% and the required return on investments in this risk class is 10%. What is the NPV and IRR of this project? (The MACRS’s first three years’ depreciation rates...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT