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2 years ago

A project with a cash inflow of $185 followed by a cash outflow of (-$250) one year later will have an irr of ___ percent.

Business

1 answer:

vampirchik [111]2 years ago

8 0

The IRR for the project is 35.14%.

The IRR is an abbreviation for internal rate of return. Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested

The IRR can be determined using a financial calculator:

Cash flow in year 0 = 185
Cash flow in year 1 = -250

IRR = 35.14%

To learn more about IRR, please check: brainly.com/question/26484024

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Working capital cash flow. Cool Water, Inc. sells bottled water. The firm keeps in inventory plastic bottles at 11% of the mon

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Answer:

The answer is attached;

Explanation:

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3 years ago

Primus Corp. is planning to convert an existing warehouse into a new plant that will increase its production capacity by 45%. Th

Lelechka [254]

Answer:

1. 3 years and 9 months

2. $16,439,325

3. 20.33 %

Explanation:

The Summary of the Cash Flows for this project will be as follows :

Year 0 - $7,125,000

Year 1 $1,875,000

Year 2 $1,875,000

Year 3 $1,875,000

Year 4 $1,875,000

Year 5 $1,875,000

Year 6 $1,875,000

Year 7 $1,875,000

Year 8 $1,875,000

Payback Period

$7,125,000 = Year 1 ($1,875,000) + Year 1 ($1,875,000) + Year 1 ($1,875,000) + $1,500,000 / $1,875,000

= 3 years and 9 months

Net Present Value (NPV)

Calculation using a financial calculator :

- $7,125,000 CFj

$1,875,000 CFj

I/YR 12%

Shift NPV $16,439,325

Internal Rate of Return (IRR)

Calculation using a financial calculator :

- $7,125,000 CFj

$1,875,000 CFj

Shift IRR 20.33 %

7 0

3 years ago

Roger is currently in the hospital, having been diagnosed with terminal cancer. Roger would like Kim, a close friend, to make an

Kisachek [45]

Answer:

The correct answer is letter "E": a durable power of attorney.

Explanation:

A power of attorney is a document stating another party is legally right to act on an individual's behalf. As soon as the individual is capable to handle business, the power of attorney loses validity.

A durable power of attorney, instead, is used when the individual delegating power to another party has knowledge of being impaired soon and possibly is not going to recover. Thus, the durable power of attorney will be valid since the individual cannot handle business until the moment of his or her decease. During that time, the selected party is right to make health and finance decisions on behalf of the individual.

5 0

3 years ago

An investment offers $5,900 per year for 15 years, with the first payment occurring one year from now. If the required return is

drek231 [11]

Answer:

Today, the investment is worth $31,997.29

Explanation:

Giving the following information:

An investment offers $5,900 per year for 15 years, with the first payment occurring one year from now. The required return is 6 percent

First, we need to calculate the final value, using the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual pay= 5,900

n= 15

i= 0.06

FV= {5,900*[(1.06^15)-1]} / 0.06= $137,328.22

Now, we can determine the present value:

PV= FV/ (1+i)^n

PV= 137,328.22/ 1.06^25= $31,997.29

4 0

3 years ago

ou are planning to save for retirement over the next 30 years. To do this, you will invest $890 per month in a stock account and

Romashka [77]

Answer:

Monthly withdraw= $23,294.99

Explanation:

Giving the following information:

Stock:

Monthly deposit= $890

Number of periods= 30*12= 360

Interest rate= 0.109 / 12= 0.0091

Bond:

Monthly deposit= $490

Number of periods= 30*12= 360

Interest rate= 0.069 / 12= 0.00575

<u>First, we need to calculate the amount of money collected at the moment of retirement. We need to use the following formula on each investment:</u>

<u />

FV= {A*[(1+i)^n-1]}/i

A= monthly deposit

Stock:

FV= {890*[(1.0091^360) - 1]} / 0.0091

FV= $2,452,918.1

Bond:

FV= {490*[(1.00575^360) - 1]} / 0.00575

FV= $586,123.47

Total FV= 2,452,918.1 + 586,123.47

Total FV= $3,039,041.57

<u>Now, the monthly withdrawal for 25 years:</u>

<u />

Number of periods= 25*12= 300

Interest rate= 0.079 / 12= 0.0066

Monthly withdraw= (FV*i) / [1 - (1+i)^(-n)]

Monthly withdraw= (3,039,041.57*0.0066) / [1 - (1.0066^-300)]

Monthly withdraw= $23,294.99

7 0

3 years ago