For the cash flow series below, calculate the external rate of return, using the return on invested

Question:

For the cash flow series below, calculate the external rate of return, using the return on invested capital approach with an investment rate of 14% per year.

Year Cash Flow, $

0 .......... 3000

1 .......... –2000

2 .......... 1000

3 ......... –6000

4 .......... 3800

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Engineering economy

ISBN: 978-0073376301

7th Edition

Authors: Leland Blank, Anthony Tarquin

See More Books

Question Posted: Dec 17, 2012 05:51 AM

See More Questions

For the cash flow diagram shown, solve for F, using an interest rate of 1% permonth. le 1% per month 0 8 Yeas S30 $30 $30 $30 S30 $30 $50 $50 $50
For the cash flow revenues shown below, find the value of G that makes the equivalent annual worth in years 1 through 7 equal to $500. The interest rate is 10% per year. Cash Flow, $ Year Year Cash...
For the cash flow diagram shown, the future worth in year 4 is closest to: (a)
Infinity & Beyond, Inc. is a producer of high-tech fashion merchandise. The company's marketing department has identified a new product concept through discussions with potential customers conducted...
Find the AM1 geometry, dipole moment, and vibrational frequencies of formaldehyde. Compare the results with experiment and with the HF/3-21G and 6@31G* results (Prob. 15.45).
Cachita Haynes works as a currency speculator for Vatic Capital of Los Angeles. Her latest speculative position is to profit from her expectation that the U.S. dollar will rise significantly against...
Define the term law and describe the sources from which law is derived.
Winchell Investment Advisors is evaluating the capital structure of Ojai Foods. Ojais balance sheet indicates that the firm has $50 million in total liabilities. Ojai has only $40 million in short-...
Determine the total dollar amount for each classification; asset, liability, stockholder's equity. Suppose the following items were taken from the balance sheet of Nike, Inc. (All dollars are in...
The standard cost sheet for Chambers Company, which manufactures one product, follows: Direct materials, 40 yards at $2.00 per yard . . . . . . . . . . . . . . . . $ 80 Direct labor, 5 hours at $20...
A company that makes clutch disks for race cars has the cash flows shown for one department. Year Cash Flow, $1000 0 .............. 65 1 .............. 30 2 .............. 84 3 .............. 10 4...
Five years ago, a company made a $500,000 investment in a new high-temperature material. The product did poorly after only 1 year on the market. However, with a new name and advertising campaign 4...
A curve is such that dy/dx = 6x(x 1). Given that the curve passes through the point (1, - 5) find the equation of the curve.
MUG Company has a market capitalization of 1 billion and 20 million shares outstanding. Its Board has decided to distribute 100 million to shareholders through a repurchase programme. How many shares...
Assume that Barclays plc has just issued a callable convertible bond. You are concerned that the share price of Barclays is going to become more volatile over the next year. Should you buy the bond?...
What are the five methods through which a company can raise seasoned equity? What might explain a companys decision to favour one over the other? Your discussion should define each and make reference...
Why will convertible bonds not be voluntarily converted to equity before expiration? When and why should a firm force conversion of convertibles?
Convertible Bonds Why might an investor buy a convertible security?
A differentiable function f (x, y) has a saddle point at a point (a, b) where its partial derivatives are simultaneously zero, if in every open disk centered at (a,b) there are domain points where f...
White Bolder Investments (WBI) You are an intern working for WBI, a large investment advisory services in Sydney. Among other regular customers, WBI has been providing advisory services for Jumbo...
Calculate Amys real income in terms of cake. Calculate the relative price of cake in terms of coffee.
A third-year college friend of yours opened Mikes Bike Repair Shop when he was a freshmen working on a sociology degree. He shared his NCF figures for the 3 years, including the $17,000 amount that...
Arc-bot Technologies, manufacturers of six-axis, electric servo-driven robots, has experienced the cash flows shown in a shipping department. (a) Determine the number of possible rate of return...
Profit and loss (in $1000 units) associated with the sale of a vision guided machine tool loading system and the resulting NCF amounts are recorded. (a) Use sign-change rules to determine the...
ABC Inc. curently has a share price of $44. If they are paying a dividend of $1.13, with a cum dividend date of November 1, would would you expect their share price to be on November 2nd? Please give...
Does China benefit from a weak currency?Does Us benefit from a strong currency? Why? Please explain
You purchased 10 ASD June 45 puts and the company declares a 10% stock dividend. How are the terms of the option contract then changed?

For the cash flow series below, calculate the external rate of return, using the return on invested

Question:

Step by Step Answer:

Descartes rule of signs 4 sign changes Norstroms criterion series s...View the full answer

Engineering economy

Students also viewed these Economics questions