Question

Calculate the internal rate of return for the two following projects: Year Project A Project B...

Calculate the internal rate of return for the two following projects:

Year Project A Project B
0 $-4920 $-3115
1 1780 1145
2 2915 1405
3 2125 1755

What is the IRR of project A? (Report answer in percentage terms and round to 2 decimal places. Do not round intermediate calculations)

What is the IRR of project B? (Report answer in percentage terms and round to 2 decimal places. Do not round intermediate calculations)

Business   Finance   
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
compute the internal rate of return for the cash flows of the following two projects (Do...
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
Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 –$40,000...
Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 –$40,000       –$180,000       1 25,000       15,000       2 22,000       45,000       3 20,000       50,000       4 15,000       275,000       The required return on these investments is 11 percent. Required: (a) What is the payback period for each project? (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).) Payback period   Project A years     Project B years  ...
Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 –$...
Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 –$ 424,000 –$ 39,500 1 44,500 20,300 2 61,500 13,400 3 78,500 18,100 4 539,000 14,900    The required return on these investments is 11 percent. a. What is the payback period for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Payback period Project A years Project B years b. What is the NPV for each...
Billabong Tech uses the internal rate of return​ (IRR) to select projects. Calculate the IRR for...
Billabong Tech uses the internal rate of return​ (IRR) to select projects. Calculate the IRR for each of the following projects and recommend the best project based on this measure. Project​ T-Shirt requires an initial investment of $18,167 and generates cash inflows of $8,500 per year for 55 years. Project Board Shorts requires an initial investment of $28,000 and produces cash inflows of $11,500 per year for 66 years. The IRR of project​ T-Shirt is _____ (Round to two decimal​...
Robben Manufacturing has the following two possible projects. The required return is 13 percent. Year Project...
Robben Manufacturing has the following two possible projects. The required return is 13 percent. Year Project Y Project Z 0 –$ 28,600 –$ 51,000 1 14,600 14,000 2 13,000 37,000 3 15,400 12,000 4 11,000 35,000 a. What is the profitability index for each project? (Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161.) Profitability index Project Y Project Z b. What is the NPV for each project? (Do not round intermediate calculations and...
Garage, Inc., has identified the following two mutually exclusive projects:     Year Cash Flow (A) Cash...
Garage, Inc., has identified the following two mutually exclusive projects:     Year Cash Flow (A) Cash Flow (B) 0 –$ 28,000 –$ 28,000 1 13,400 3,800 2 11,300 9,300 3 8,700 14,200 4 4,600 15,800    a-1 What is the IRR for each of these projects? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)    IRR   Project A %   Project B %    a-2 Using the IRR decision rule, which...
The following are the cash flows of two projects: Year Project A Project B 0 $...
The following are the cash flows of two projects: Year Project A Project B 0 $ (210 ) $ (210 ) 1 90 110 2 90 110 3 90 110 4 90 a. Calculate the NPV for both projects if the opportunity cost of capital is 17%. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
The following are the cash flows of two projects: Year Project A Project B 0 $...
The following are the cash flows of two projects: Year Project A Project B 0 $ (350 ) $ (350 ) 1 180 250 2 180 250 3 180 250 4 180 a. Calculate the NPV for both projects if the opportunity cost of capital is 16%. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
Internal rate of return For the project shown in the following​ table, calculate the internal rate...
Internal rate of return For the project shown in the following​ table, calculate the internal rate of return ​(IRR). Then​ indicate, for the​ project, the maximum cost of capital that the firm could have and still find the IRR acceptable. The​ project's IRR is ​%. (Round to two decimal​ places.) Initial investment ​(CF 0CF0​) $110,000 Year ​(t​) Cash inflows ​(CF Subscript tCFt​) 1 $25,000 2 $50,000 3 $30,000 4 $35,000 5 $10,000
The following are the cash flows of two projects: Year Project A Project B 0 $...
The following are the cash flows of two projects: Year Project A Project B 0 $ (210 ) $ (210 ) 1 90 110 2 90 110 3 90 110 4 90 If the opportunity cost of capital is 12%, what is the profitability index for each project? (Do not round intermediate calculations. Round your answers to 4 decimal places.) project A: project B:
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT