Consider the investment project with the following net cash flows: [End of Year (n) Net Cash Flow

Question:

Consider the investment project with the following net cash flows:

[End of Year (n) Net Cash Flow

0………………………………………..........-$12,000

1……………………………………….............$2,500

2……………………………………….............$5,500

3……………………………………....................….X

4……………………………………….....................X

What would be the value of X if the project’s IRR is 25%?

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

Step by Step Answer:

Related Book For book-img-for-question

Fundamentals of Engineering Economics

ISBN: 978-0132775427

3rd edition

Authors: Chan S. Park

See More Books

Question Posted: Nov 13, 2018 05:05 AM

See More Questions

Ancelet Co. has identified an investment project with the following cash flows. If the discount rate is 10 percent, what is the present value of these cash flows? What is the present value at 18...
Consider an investment project with the following net cash flows: Year Net Cash Flow 0.$1,500 1..........X 2....$650 3..........X What would be the value of X if the projects IRR is 10%?
Project Alpha offers the following net cash flows following an initial (year 0), certain outlay (NINV) of $70,000: a. Compute the NPV of this project at a 17 percent cost of capital. b. If the...
The adjusted trial balance of Silver Sign Company follows: Requirements 1. Assume Silver Sign Company has a January 31 year end. Journalize Silvers closing entries at January 31. 2. How much net...
A treasure map directs you to start at a palm tree and walk due north for 15.0 m. You are then to turn 90 and walk 22.0 m; then turn 90 again and walk 5.00 m. Give the distance from the palm tree,...
Find the Norton equivalent for the circuit IN Fig. 13.84 at terminals a-b. 882-2 80v
Suppose that in the double stochastic Simplico gold mine example the real probability of an up move in gold is 6 and the real probability of an up move in the short rate is .7. Suppose also that gold...
1. Describe the mechanisms that WorldComs management used to transfer profit from other time periods to inflate the current period. 2. Why did Arthur Andersen go along with each of these mechanisms?...
Evaluate log3 1 243
As a participant in a new mentoring program between your university and a local high school, you have volunteered to give a presentation to a class of Grade 10 students on the challenges in the new...
An investor bought 100 shares of stock at a cost of $10 per share. He held the stock for 15 years and then sold it for a total of $4,000. For the first three years, he received no dividends. For each...
Consider four projects with the following sequences of cash flows: (a) Identify all the simple investments. (b) Identify all the non-simple investments. (c) Compute the i* for each project using...
In Exercises show that and g are inverse functions (a) Analytically (b) Graphically. f(x)=x - 4, g(x) = x + 4, x 0
Case Study 2 Farooq Farooq is 28 years old. He works in a call centre at a major bank and his net earnings are approximately $1800 per month. He also works as a bartender at a restaurant Friday...
Introduction to Written Analyses in this Course Read and follow the instructions contained in the Orientation to Writing Assignments For each of these analyses topics in the course you will analyze...
Management is considered as a _ _ _ _ _ _ _ _ _ _ because it has been developed as a systematic body of knowledge and recognised as a distinct discipline.
While simple actions can be undertaken by a paralegal in small claims court, the complexities of cases and senior courts require the services of a lawyer. True False
You are part of a family business which manufactures children's clothing. There is a dispute among some of the family members about the appropriate division of profits. In order to have a judicial...
Software EG, a retail company, orders two kinds of software from Tele-Hard Software. Annually, Software EG sells 800 units of product 1 and 400 units of product 2. The unit purchasing cost is $30 per...
Gordon and Lisa estimate that they will need $1,875,000 in 40 years for their retirement years. If they can earn 8 percent annually on their funds, how much do they need to save annually?
What business benefits did the companies and services described in this case achieve by analyzing and using big data.
Identify two decisions at the organizations described in this case that were improved by using big data, and two decisions that were not improved by using big data.
List and describe the limitations to using big data.
A portfolio has a standard deviation of 25%. The correlation of the portfolio and the market is 1. If the risk-free rate is 3.2%, the expected return on the market portfolio is 11%, and the standard...
(6 pts.) The following gas phase reaction system is conducted in an isothermal constant volume batch reactor. The reactor is charged with pure A with an initial concentration CAO AB ri = k CA B D r2...
Based on the NPV and IRR investment criteria, should your company introduce a new candy flavor? 1) Should the cost of a marketing survey be included in your decision? Why or why not? 2) Calculate the...

Consider the investment project with the following net cash flows: [End of Year (n) Net Cash Flow

Question:

Step by Step Answer:

PW25 12000 2500PF 2...View the full answer

Fundamentals of Engineering Economics

Related Video

Students also viewed these Business questions