Question

A firm evaluates all of its projects by applying the IRR rule. A project under consideration has the following cash flows: |

Year | Cash Flow | ||

0 | –$ | 28,100 | |

1 | 12,100 | ||

2 | 15,100 | ||

3 | 11,100 | ||

If the required return
is 15 percent, what is the IRR for this project? |

Answer #1

Solution: | |||

IRR | 17.45 | % | |

YES | |||

Projects should be accepted as its IRR is higher than required rate of return 15% of the project | |||

Working Notes: | |||

We can get exact by excel method like below | |||

A | B | C | |

1 | Year | Cash Flow | |

2 | 0 | -28,100 | |

3 | 1 | 12,100 | |

4 | 2 | 15,100 | |

5 | 3 | 11,100 | |

17.45% | |||

Using Excel formula | =IRR(C2:C5) | ||

=IRR(C2:C5) | |||

here in formula C is column in which all cash flows are entered. | |||

Number 2 & 5 shows that data from 2th row to 5th row of column C is used for IRR calculation. | |||

Please feel free to ask if anything about above solution in comment section of the question. | |||

A firm evaluates all of its projects by applying the IRR rule.
A project under consideration has the following cash flows:
Year
Cash Flow
0
–$
28,700
1
12,700
2
15,700
3
11,700
If the required return is 15 percent, what is the IRR for this
project? (Do not round intermediate calculations and enter
your answer as a percent rounded to 2 decimal places, e.g.,
32.16.)
Should the firm accept the project?
Yes
No

A firm evaluates all of its projects by applying the IRR rule. A
project under consideration has the following cash flows:
Year
Cash Flows
0
-24326
1
12923
2
12936
3
12896
What is the IRR for this project

A firm evaluates all of its projects by applying the IRR
rule.
Year
Cash Flow
0
–$
148,000
1
68,000
2
71,000
3
55,000
What is the project's IRR? (Do not round intermediate
calculations and enter your answer as a percent rounded to 2
decimal places, e.g., 32.16.)
Internal rate of return
%
If the required return is 16 percent, should the firm accept the
project?

A firm evaluates all of its projects by applying the IRR
rule.
Year
Cash Flow
0
–$
149,000
1
67,000
2
72,000
3
56,000
What is the project's IRR? (Do not round intermediate
calculations and enter your answer as a percent rounded to 2
decimal places, e.g., 32.16.)
Internal rate of return
%
If the required return is 16 percent, should the firm accept the
project?

A firm evaluates all of its projects by applying the NPV
decision rule. A project under consideration has the following cash
flows:
Year
Cash Flow
0
–$
28,300
1
12,300
2
15,300
3
11,300
１.What is the NPV for the project if the required return is 11
percent? (Do not round intermediate calculations and round
your answer to 2 decimal places, e.g., 32.16.)
NPV
2.At a required return of 11
percent, should the firm accept this project?
Yes
No...

A firm evaluates all of its projects by applying the NPV
decision rule. A project under consideration has the following cash
flows: Year Cash Flow 0 –$ 27,400 1 11,400 2 14,400 3 10,400 What
is the NPV for the project if the required return is 12 percent?
(Do not round intermediate calculations and round your answer to 2
decimal places, e.g., 32.16.) NPV $ At a required return of 12
percent, should the firm accept this project? No Yes...

A firm evaluates all of its projects by applying the NPV
decision rule. A project under consideration has the following cash
flows:
Year
Cash Flow
0
–$
28,800
1
12,800
2
15,800
3
11,800
What is the NPV for the project if the required return is 10
percent? (Do not round intermediate calculations and round
your final answer to 2 decimal places. (e.g., 32.16))
NPV
=$
At a required return of 10 percent, should the firm...

A firm evaluates all of its projects by applying the NPV
decision rule. A project under consideration has the following cash
flows:
Year
Cash Flow
0
–$
28,500
1
12,500
2
15,500
3
11,500
What is the NPV for the project if the required return is 10
percent? (Do not round intermediate calculations and round
your answer to 2 decimal places, e.g., 32.16.)
NPV
$
At a required return of 10 percent, should the firm accept...

A firm evaluates all of its projects by applying the NPV
decision rule. A project under consideration has the following cash
flows:
Year
Cash Flow
0
–$
27,500
1
11,500
2
14,500
3
10,500
What is the NPV for the project if the required return is 11
percent? (Do not round intermediate calculations and round
your answer to 2 decimal places, e.g., 32.16.)
NPV $
At a required return of 11 percent, should the firm accept this
project?...

A firm evaluates all of its projects by applying the NPV
decision rule. A project under consideration has the following cash
flows: Year Cash Flows
0 (-4072)
1 (1750)
2 (1632)
3 (1537)
What is the NPV for the project if the required return is 25
percent? (Negative amount should be indicated by a minus sign. Do
not round intermediate calculations and round your final answer to
2 decimal places. (e.g., 32.16))

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 11 minutes ago

asked 18 minutes ago

asked 19 minutes ago

asked 39 minutes ago

asked 58 minutes ago

asked 58 minutes 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