Question

A project has the following cash flows. What is the internal rate of return? THE ANSWER IS 21.32% PLEASE SHOW WORK WITHOUT USING EXCEL

YEAR 0 1 2 3

NET INCOME -$390,000 $168,000 $190,000 $218,600

Answer #1

Solution:-

**To Calculate Internal Rate of Return -**

IRR is the rate where NPV is zero.

NPV = Present Value of Cash Inflow - Present Value of Cash outflow.

Let R = 20%

NPV =

NPV = $1,68,000 * 0.8333 + $1,90,000 * 0.6944 + $2,18,600 * 0.5787 - $3,90,000

**NPV = $8,449.07**

Let R = 25%

NPV =

NPV = $1,68,000 * 0.800 + $1,90,000 * 0.640 + $2,18,600 * 0.512 - $3,90,000

**NPV = -$22,076.80**

**Formula of Internal Rate of Return -**

**IRR =
**

**IRR =
**

**IRR = 21.32%**

If you have any query related to question then feel free to ask me in a comment.Thanks. Please rate.

A project has the following cash
flows. What is the internal rate of return?
Year
0
1
2
3
Cash flow
-$782,100
$219,500
$348,600
$348,600

After-tax net cash flows for a project are as follows. What is
the internal rate of return for the project? Enter your answer as a
percentage between 0 and 100, rounded to the nearest tenth of a
percent.
Year 0 : -$244,000
Year 1: $63,000
Year 2 : $66,000
Year 3 : $149,157

What are the Net Present Value and Internal Rate of Return for
the following cash flows - assuming a 3.5% discount rate?
Year 0: ($35,900)
Year 1: $20,750
Year 2: ($16,750)
Year 3: $32,100
Year 4: $12,525
Year 5: $18,220
Is the project profitable on a discounted basis? Is it something
we would want to pursue as an organization?

1. What's the internal rate of return of the following cash
flows with a 8% WACC?
2. What's the modified internal rate of return of the following
cash flows with a 8% WACC?
Year 0 = 100,000
Year 1 = 10,000
Year 2 = 50,000
Year 3 = 45,000
Year 4 = 25,000
3. How long should a company keep the following project?
WACC = 8%
CF year 0 = 1,500,000
Salvage = 1,500,000
CF year 1 = 750,000
Salvage...

Find the modified internal rate of return (MIRR) for the
following series of future cash flows if the company is able to
reinvest cash flows received from the project at an annual rate of
13.72 percent.The initial outlay is $470,600.
Year 1: $185,900
Year 2: $185,100
Year 3: $125,700
Year 4: $183,400
Year 5: $184,100
Round the answer to two decimal places in percentage
form.
How do I do this in excel?

What is the Modified Internal Rate of Return (MIRR) for the
following cash flows? Assume that the required rate of return is
4%
Year
CFs
0
-1,000
1
100
2
200
3
350
4
800

What is the true IRR of the project with the following cash
flows if the firm would be able to reinvest the cash inflows at a
rate of return equal to 10%?
Year 0: -$400
Year 1: $100
Year 2: $200
Year 3: $300
*I am not using Excel to solve. I am using the HP 10bll to
solve. Please explain.

compute the internal rate of return for the cash flows of the
following two projects (Do not round intermediate calculations.
Enter your answers as a percent rounded to 2 decimal places, e.g.,
32.16.):
year
project A
PROJECT B
0
-6800
-4400
1
2600
1500
2
3400
2900
3
2200
1800

What is the Internal Rate of Return on an investment with the
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Year Cash Flow...
0 -$761,125
1 $330,500
2 $454,700
3 $161,200
Answers:
a. 12.93 percent
b. 9.42 percent
c. 11.88 percent
d. 14.71 percent
e. 10.96 percent

Assume the following cash flows for Project A: Year 0
=$(10,000); Year 1 = $4,000; Year 2 = $3,500; Year 3 = $1,500; Year
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9.00%. For Project A, please calculate: 1) the discounted payback
period; 2) the net present value; 3) the internal rate of return;
and 4) the modified internal rate of return.

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