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Anna35 [415]
3 years ago
9

Maxwell Feed & Seed is considering a project that has the following cash flow data. What is the project's IRR? Note that a p

roject's projected IRR can be less than the WACC (and even negative), in which case it will be rejected. Year 0 1 2 3 4 5 Cash flows -$6,750 $2,000 $2,025 $2,050 $2,075 $2,100 a. 15.45% b. 13.74% c. 15.61% d. 17.17% e. 12.96%
Business
1 answer:
jolli1 [7]3 years ago
7 0

Answer:

The correct option is c. 15.61%.

Explanation:

Note: See the attached excel file for the calculation of the IRR of this project.

Internal Rate of Return (IRR) can be described as a discount rate that makes the net present value (NPV) of a project to be equal to zero.

An IRR can be calculated using an excel function IRR. After inputting the data of the project to an excel sheet in the attached excel file, the IRR is calculated by simply typing the =IRR(B4:B9) in any cell of the sheet.

From the attached excel file, the IRR is obtained as 15.61%

Therefore, the correct option is c. 15.61%.

Download xlsx
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An investor who was not as astute as he believed invested $264,500 into an account 12 years ago. Today, that account is worth $2
valina [46]

Answer:

-19.061%

Explanation:

interest earned= principal x time x interest rate

Interest earned = $264,500 - $204,000 = $-60,500

$-60,500 = $264,500 x 12 x interest rate

interest rate = -0.19061 = -19.061%

4 0
4 years ago
The case study method is most effective in:A. Proving out theoryB. Narrowing the gap between theory and practiceC. Simulating re
tino4ka555 [31]

Answer:

Letter B is correct. <u>Narrowing the gap between theory and practice.</u>

Explanation:

Case study is an investigative methodological approach applied to simple or applied social sciences. It is carried out through the use of different qualitative methods for the collection of data and information relevant to the foundation of the research. The qualitative method is the most appropriate in a case study, as it occurs through subjective and not substantially statistical means of in-depth analysis of relevant factors in an event, an individual, an institution, a group and others.

Case studies can be classified as:

  • exploratory,
  • descriptive, or
  • explanatory.

So it is correct to state that the purpose of the case study is to reduce the difference between theory and practice. Because the analysis of the information collected and the variables and patterns found will provide subsidies for the discussion and better understanding and reasoning between what happens between the theory and the practice analyzed in the case study.

3 0
3 years ago
Can someone plz help me with this
kompoz [17]

Answer:

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Explanation:

5 0
3 years ago
A bank is earning 6 percent on its $150 million in earning assets and is paying 4.75 percent of its liabilities. The bank's inte
iren [92.7K]

Answer:

Interest rate spread will be 1.25 %

Explanation:

We have given a bank is earning 6 % on its $150 million earning assets

So interest earned = 6 %

Interest paid on liabilities = 4.75 %

We have to find the bank interest rate spread

We know that bank interest rate spread is given by

Interest rate spread = interest earned - interest paid on liabilities = 6 - 4.75 = 1.25 %

So interest rate spread will be 1.25 %

3 0
3 years ago
Eli has a .375 batting average. What is the probability he gets a hit in each of three consecutive bats? Express your answer as
Anvisha [2.4K]

Answer:

P(3 hits) = 27 / 512

Explanation:

Given

P = AVG = 0.375 = 375 / 1000 = 3 / 8

This is the probability of success, success, success in three consecutive independent trials.

P(3 hits) = P*P*P = P³ = (3/ 8)³ = 27 / 512

7 0
3 years ago
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