Question

Filter Corp. has a project available with the following cash
flows:

Year Cash Flow

0 −$13,700

1 6,600

2 7,900

3 4,100

4 3,700

What is the project's IRR?

Answer #1

IRR: internal rate of return is a break even rate at which point NPV of project becomes 0, it can be calculated by using Excel "=IRR(Values 0 to 4)" function as can be seen in image, there are other manual methods also present that is trial and error method that solely depend on ones perception of two rates that is one below the IRR and one above the IRR and by interpolation a middle way IRR is calculated that is IRR = R1 + [(NPV1 x (R2-R1))/(NPV1-NPV2)].

Here R1 is lower rate and R2 is above rate, NPV1 and 2 are their present values calculated respectively.

Same way it can be calculated by financial calculator by setting Values of CF0 to CF4, and pressing CPT+IRR

Filter Corp. has a project available with the following cash
flows:
Year
Cash Flow
0
−$16,000
1
5,800
2
7,100
3
6,100
4
4,900
What is the project's IRR?
Multiple Choice
21.98%
20.41%
20.93%
18.84%
19.62%

A company. has a project available with the following cash
flows:
Year
Cash Flow
0
−$35,990
1
12,570
2
14,740
3
19,660
4
11,000
If the required return for the project is 7.9 percent, what is the
project's NPV?

A company. has a project available with the following cash
flows: Year Cash Flow 0 −$31,190 1 13,170 2 14,740 3 21,060 4
12,200 If the required return for the project is 9.9 percent, what
is the project's NPV? Multiple Choice $19,687.63 $17,226.67
$8,863.54 $29,980.00 $15,791.12

Living Colour Co. has a project available with the following
cash flows:
Year
Cash Flow
0
−$35,710
1
7,850
2
9,410
3
13,280
4
15,450
5
10,100
If the required return for the project is 7.5 percent, what is the
project's NPV?

Your company has a project available with the following cash
flows:
Year Cash Flow
0: −$80,600
1: 21,750
2: 25,500
3: 31,300
4: 26,250
5: 20,300
If the required return is 15 percent, should the project be
accepted based on the IRR?

Living Colour Co. has a project available with the following
cash flows:
Year Cash Flow 0− $34,590
Year 1- 8,060
Year 2- 9,690
Year 3- 13,770
Year 4- 15,730
Year 5- 10,520
If the required return for the project is 8.2 percent, what is
the project's NPV?
A.) $10,577.24
B.) $11,458.68
C.) $12,088.28
D.) $3,483.43
E.) $23,180.00

XYZ Corp. is considering a project that has the following cash
flow data. What is the project's IRR? Note that a project's IRR can
be less than the WACC or negative, in both cases it will be
rejected. Year 0 1 2 3 Cash flows -$1,000 $325 $425 $525

Sam Corp. is considering a project that has the following cash
flow data. What is the project's IRR (Internal Rate of
Return)? Note that a project's projected IRR can be less than the
weighted average cost of capital (WACC) or negative, in both cases
it will be rejected. Show work.
Year 0 1 2 3 4
Cash
flows -$1,900 $600 $825 $950 -$50
Helmand Inc. is considering a project that has the following
cash flow and WACC data. What is the project's
MIRR? Note that a project's projected MIRR can be less
than...

Mega Dynamics is considering a project that has the following
cash flows:
Year
Project Cash Flow
0
?
1
$2,000
2
3,000
3
3,000
4
1,500
The project has an IRR of 17% . The firm's cost of capital is 11
percent. What is the project's net present value (NPV)?

Anderson International Limited is evaluating a project in
Erewhon. The project will create the following cash flows:
Year
Cash Flow
0
–$582,000
1
212,000
2
155,000
3
220,000
4
199,000
All cash flows will occur in Erewhon and are expressed in
dollars. In an attempt to improve its economy, the Erewhonian
government has declared that all cash flows created by a foreign
company are “blocked” and must be reinvested with the government
for one year....

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 2 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 2 hours ago

asked 2 hours ago

asked 2 hours ago