Determine i* per year for the cash flows shown using factors and the IRR function. See Problem
Question:
Transcribed Image Text:
3 2 Year Cash Flow, $ 0 -80,000 9000 70,000 30,000
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 90% (10 reviews)
Factors Move all cash flows to year 1 0 80000 900...View the full answer
Answered By
Ayush Mishra
I am a certified online tutor, with more than 3 years of experience in online tutoring. My tutoring subjects include: Physics, Mathematics and Mechanical engineering. I have also been awarded as best tutor for year 2019 in my previous organisation. Being a Mechanical Engineer, I love to tell the application of the concepts of science and mathematics in the real world. This help students to develop interest and makes learning fun and easy. This in turn, automatically improves their grades in the subject. I teach students to get prepared for college entry level exam. I also use to teach undergraduate students and guide them through their career aim.
5.00+
2+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
You need to determine i* per year for the cash flows shown below. Since you have a new boss, you decided to perform a thorough analysis. Do the following: (a) Use a spreadsheet to find i*. (b)...
-
For the cash flows shown, calculate the future worth in year 8 using i = 10% peryear. Year Cash Flow, 100 00 100 100 100 300 300
-
For the cash flows shown, determine the present worth in year 0, if the interest rate is 12% peryear. Year Cash Flow, S13 13 13 13 16 19 22 25 28 31 12 3 4 5 6 7 8 9 10
-
Drag the labels onto the diagram to identify the cell types and matrix components of areolar connective tissue, a model connective tissue. Neutrophil Collagen fiber Lymphocyte Ground substance...
-
On December 12, 2018, an investment costing $80,000 was sold for $100,000. The total of the sale proceeds was credited to the investment account. Required: 1. Prepare the journal entry to correct the...
-
AutoEdge is considering the pros and cons of setting up a facility in either India or China. What would be a solid reason for choosing to operate in a particular country? AutoEdge can build its own...
-
The file beveragedistributor contains data on the monthly revenue for a large regional distributor of beverages. a. Create a line chart to depict the revenue time series at the annual level. What...
-
For Longeis Company, variable costs are 70% of sales, and fixed costs are $210,000. Managements net income goal is $60,000. Compute the required sales needed to achieve managements target net income...
-
Zoe Corporation has the following information for the month of March: Cost of direct materials used in production $18,132 Direct labor 24,624 Factory overhead 35,790 Work in process inventory, March...
-
Acme Manufacturing, Inc. was originally a family owned operation that has been in business for several generations. It has grown steadily and is now listed on the stock exchange with family members...
-
Use factors and a spreadsheet to determine the interest rate per period from the following equation: 0 = 40,000 + 8000(PA,i*,5) + 8000(PF,i*,8)
-
The Camino Real Landfill was required to install a plastic liner to prevent leachate from migrating into the groundwater. The fill area was 50,000 m 2 and the installed liner cost was $8 per m 2 . In...
-
Find the indicated z-score(s) shown in the graph. Area = 0.475 Area = 0.475 z = ? 0 z = ? Z
-
Distinguish among accounting profit, economic profit, and normal profit. Which type of profit determines how entrepreneurs allocate resources among different business ventures? Explain.
-
As a business owner, what are the costs and benefits of moving half your production abroad?
-
For each of the following cognitive biases, provide at least one example from your own life. a. Confirmation bias b. Self-serving bias c. The overconfidence effect d. Hindsight bias e. The...
-
If the government decreases expenditures, the AE curve will shift _______ and the AD curve will shift _______. a. down; left b. down; right c. up; left d. up; right
-
The MR curve of a perfectly competitive firm is horizontal. The MR curve of a monopoly firm is: a. horizontal, too. b. upward sloping. c. downward sloping. d. it depends.
-
If a body slides on a surface, it experiences friction F (a force against the direction of motion). Experiments show that |F| = |N| (Coulomb's law of kinetic friction without lubrication), where N is...
-
In a large midwestern university, 30% of the students live in apartments. If 200 students are randomly selected, find the probability that the number of them living in apartments will be between 55...
-
An effective 12.68% per year, compounded monthly, is the closest to: (a) 12% per year (b) 12% per year, compounded annually (c) 1% per month (d) 1% per month, compounded annually
-
For an interest rate of 2% per month, the effective semiannual interest rate is: (a) 2.02% (b) 12.005% (c) 12.31% (d) 12.62%
-
An engineer who is saving for her retirement plans to deposit $500 every quarter, starting one quarter from now, into an investment account. If the account pays interest at 6% per year, compounded...
-
MM Corp. has 50,000 shares outstanding with share price of $18. It has debt with market value of $300,000. The equity beta is 1.2 and debt beta is 0.1. The risk-free rate is 2% and the market risk...
-
The market is expected to return 15 percent next year and the risk-free rate is 7 percent. What is the expected rate of return on a stock with a beta of 1.3? The covariance of the market's returns...
-
A stock's current price is 145.05. A put option with an exercise price of 120 and maturity of 3 months is currently priced at $ 28.83. What is the option's time value?
Study smarter with the SolutionInn App