What is the Internal Rate of Return for the following net annual cash flows?Cash flows-$45,000$12,000$37,000$12,000$17,000A. 26.72%B. 16.72%C. 6.72%D. 36.72%PeriodTodayYear 1Year 2Year 3Year 4

Internal rate of return (IRR) is the rate at which present value of cash inflows will be equal to…

Answered: What is the Internal Rate of Return for…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Similar questions

What is the present value of the following set of cash flows at an interest rate of 6% p.a. compounded annually? End of Year 1 $2,200 End of Year 2 $5,100 End of Year 3 $1,150 Select one: a. $7,580.01 b. $8,450.00 c. $7,850.01 d. $5,880.35
Year Cash Flow 0 −$ 9,300 1 5,700 2 3,000 3 4,800 a. What is the profitability index for the cash flows if the relevant discount rate is 10 percent? b. What is the profitability index for the cash flows if the relevant discount rate is 16 percent? c. What is the profitability index for the cash flows if the relevant discount rate is 24 percent?
What is the Net Present Value of the following cash flow stream? Year Cash Flow 0 -$1,977 1 $421 2 $889 3 $517 4 $939 Assume an interest rate of 3%
Cash Flow Year -4 9,600 4,700 5,300 2,200 1 2 a. What is the profitability index for the cash flows if the relevant discount rate is 9 percent? Profitability index b. What is the profitability index for the cash flows if the relevant discount rate is 18 percent? Profitability index
Year Cash Flow 0 –$ 17,200 1 9,500 2 8,400 3 4,900 a. What is the profitability index for the set of cash flows if the relevant discount rate is 10 percent? b. What is the profitability index for the set of cash flows if the relevant discount rate is 15 percent? c. What is the profitability index for the set of cash flows if the relevant discount rate is 22 percent?
What is the IRR of the following set of cash flows? Year Cash Flow -$ 0 10,512 123 7,000 4,800 3,300 Multiple Choice 22.7% 25.09% 24.38% 23.9% 23.42%
What is the Net Present Value of the following cash flow stream? Year Cash Flow 0 - $1, 145 1 $459 2 $ 383 3 $411 4 $266 Assume an interest rate of 16% round off your answer by two decimal places!!!
Year Cash Flow 0 (8,100.00) 1 3,600.00 2 3,900.00 3 2,800.00 a. What is the profitability index for the cash flows if the relevant discount rate is 9 percent? b. What is the profitability index for the cash flows if the relevant discount rate is 14 percent? c. What is the profitability index for the cash flows if the relevant discount rate is 24 percent?
What is the IRR of the following set of cash flows? Year 0 2 WN Cash Flow -$ 8,213 4,800 3,300 3,700 Multiple Choice O 20.71% 22.24% 21.36% 21.8% 22.89%
k What is the payback period for the following set of cash flows? Year Cash Flow -$ 6,100 2,900 2,400 2,500 2,400 O 1 234
Compute the rate of return for the following cash flows: Year Cash Flow 1-5 $1,512 6-10 $29,256
Calculate the internal rate of return for a $300.0m cash outflow at the end of year 0 and a $716.0m cash inflow at the end of year 5. 16% 20% 18.5% 19%

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS

What is the Internal Rate of Return for the following net annual cash flows? Period Cash flows Today -$45,000 Year 1 $12,000 $37,000 $12,000 $17,000 A. 26.72% B. 16.72% C. 6.72% Year 2 Year 3 Year 4