# Question

Redo Problem 24 using sales growth rates of 15 and 25 percent in addition to 20 percent. Illustrate graphically the relationship between EFN and the growth rate, and use this graph to determine the relationship between them. At what growth rate is the EFN equal to zero? Why is this internal growth rate different from that found by using the equation in the text?

## Answer to relevant Questions

Redo Problem 26 using sales growth rates of 30 and 35 percent in addition to 20 percent. Illustrate graphically the relationship between EFN and the growth rate, and use this graph to determine the relationship between them. ...Suppose the spot and six-month forward rates on the Norwegian krone are Kr 5.78 and Kr 5.86, respectively. The annual risk-free rate in the United States is 3.8 percent, and the annual risk-free rate in Norway is 5.7 ...An investment project provides cash inflows of $585 per year for eight years. What is the project payback period if the initial cost is $1,700? What if the initial cost is $3,300? What if it is $4,900?Garage, Inc., has identified the following two mutually exclusive projects:a. What is the IRR for each of these projects? Using the IRR decision rule, which project should the company accept? Is this decision necessarily ...A project has the following cash flows: Year Cash Flow0 $42,0001 21,0002 32,000What is the IRR for this project? If the required return is 12 percent, should the firm accept the project? What is the NPV of this project? ...Post your question

0