Question

What is the IRR of the following set of cash flows? Year Cash Flow 0 –$10,904 1 4,400 2 5,500 3 6,100 rev: 09_18_2012

Answer #1

Project | ||||

IRR is the rate at which NPV =0 | ||||

IRR | 20.62% | |||

Year | 0 | 1 | 2 | 3 |

Cash flow stream |
-10904.000 | 4400.000 | 5500.000 | 6100.000 |

Discounting factor | 1.000 | 1.206 | 1.455 | 1.755 |

Discounted cash flows project | -10904.000 | 3647.813 | 3780.268 | 3475.919 |

NPV = Sum of discounted cash flows | ||||

NPV Project = | 0.000 | |||

Where | ||||

Discounting factor = | (1 + discount rate)^(Corresponding period in years) | |||

Discounted Cashflow= | Cash flow stream/discounting factor | |||

IRR= | 20.62% |

What is the IRR of the following set of cash flows?
Year Cash Flow
0
–$9,259
1
3,100
2
4,700
3
6,600
rev: 09_18_2012
22.01%
23.58%
21.34%
22.91%
22.46%

What is the IRR of the following set of cash flows?
Year Cash Flow
0 -11,109
1 4,500
2 6,800
3 5,500
A) 21.85%, B) 23.46%, C) 23%, D) 24.15%, E) 22.54%

What is the IRR of the following set of cash flows?
Year Cash Flow
0 –$9,496
1 6,500
2 3,400
3 3,900

What is the IRR of the following set of cash flows?
Year
Cash Flow
0
–$9,791
1
6,700
2
4,200
3
3,500

What is the IRR of the following set of cash flows? Year Cash
Flow 0 –$13,472 1 7,000 2 6,200 3 6,400

For the following set of cash flows,
Year
Cash Flow
0
–$8,000
1
3,400
2
6,100
3
3,800
a. What is the NPV at a discount rate of 0 percent?
b. What is the NPV at a discount rate of 9 percent?
c. What is the NPV at a discount rate of 21 percent?
d. What is the NPV at a discount rate of 26 percent?

P9-10 Calculating IRR [LO5]
What is the IRR
of the following set of cash flows?
Year
Cash Flow
0
–$11,710
1
6,600
2
6,800
3
3,400
Multiple Choice
23.32%
22.4%
21.72%
24%

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%

What is the payback period for the following set of cash flows?
Year Cash Flow 0 −$ 4,300 1 2,000 2 1,800 3 2,000 4 2,200

What is the payback period for the following set of cash
flows?
Year
Cash Flow
0
$ -5,800
1
2,600
2
1,300
3
1,400
4
2,500

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