Question

Calculate the internal rate of return for an investment with the following characteristics in excel: Initial...

Calculate the internal rate of return for an investment with the following characteristics in excel:

Initial Cost $450,000
Project Life 10 years
MARR 15%
Annual Revenue $75,000
Annual Cost $8,000

Please show excel equations

Homework Answers

Answer #1

calc:

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Requirements: Using Microsoft Excel to calculate and analyze the Net Present Value (NPV), Internal Rate of...
Requirements: Using Microsoft Excel to calculate and analyze the Net Present Value (NPV), Internal Rate of Return (IRR), Accounting Rate of Return and Payback Period of the following investment (chapter 20, text). Initial investment $ 12,950 Estimated life 5 years Annual cash inflows $ 6,000 Cost of capital 12%
Compare the alternatives using IRR (internal rate of return) method. MARR is 11% per year. Alternative...
Compare the alternatives using IRR (internal rate of return) method. MARR is 11% per year. Alternative 1 Alternative 2 First cost 176360 268330 Annual revenue 23960 19450 Salvage value 22310 30240 Life, years ∞ ∞ in excel please!!
What would be the internal rate return on an investment with an initial cost of $226,485,...
What would be the internal rate return on an investment with an initial cost of $226,485, expected annual cash flows of $45,000 and expected annual income of $43,500 for the next 7 years? Group of answer choices 8% 12% 9% 10%
GuSont Inc. was considering an investment in the following project: Required initial investment $ 990,000 Net...
GuSont Inc. was considering an investment in the following project: Required initial investment $ 990,000 Net annual after-tax cash inflow $ 165,000 Annual depreciation expense ($990,000 − $165,000)/15 years $ 55,000 Estimated salvage value $ 165,000 Life of the project in years 15 The internal rate of return (IRR) is (Note: to solve this problem students will need access either to Appendix C, Table 2 (Chapter 12) or to Excel): Multiple Choice Somewhere between 12% and 14%. Greater than 15%....
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. Initial investment   $160,000 Year (t)   Cash inflows 1   $35,000 2   $25,000 3   $45,000 4   $45,000 5   $45,000 The​ project's IRR is? The maximum cost of capital that the firm could have and still find the IRR acceptable is?
Find the internal rate of return​ (IRR) for the following project. The project requires an initial...
Find the internal rate of return​ (IRR) for the following project. The project requires an initial investment of $ 11 comma 000 and provides 5 annual cash inflows of $ 29 comma 200 . Assume a cost of capital of 7.8 % .
3) Calculate the rate of return on the incremental investment and determine which of the following...
3) Calculate the rate of return on the incremental investment and determine which of the following mechanized irrigation systems, if any, should be selected by Schrute Farms, if the MARR is 6% per year. Will DN be included in the analysis? Why or why not? Centr Pivot Lateral Move Capital cost, $ -3,200,000 -4,800,000 Operating cost, $ per year -250,000 -490,000 Revenue, $ per year 1,900,000 2,600,000 Life, years 10 10
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
A rm is considering an investment project with the following information: Initial capital expenditure $36 million...
A rm is considering an investment project with the following information: Initial capital expenditure $36 million Annual sales (in units) 2 million units Selling price per unit $20 Cost per unit $10 Project life 3 years Depreciation Straight line, over the life of the project Working capital Initially (Year 0) the project requires an increase in net working capital of $6 million, but it will be recovered after the project's life (Year 3). Tax rate 20% WACC 15% (a) What...
(Ignore income taxes in this problem.) An investment project has the following characteristics: Cost of equipment...
(Ignore income taxes in this problem.) An investment project has the following characteristics: Cost of equipment $22,820 Annual cash inflows $ 5,000 Internal rate of return 12% The life of the equipment is closest to: a. It is impossible to determine from the data given b. 7 years c. 12 years d. 4.56 years
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT