A project takes 1 year to complete and has a CAPEX of 10 mln. After completion, it

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

Question:

A project takes 1 year to complete and has a CAPEX of 10 mln. After completion, it generates annual OPEX and Revenues of 1 mln and 1,5 mln, respectively. In a 4 year timeframe, what is the project's IRR?

Related Book For answer-question

Practical Management Science

ISBN: 978-1305250901

5th edition

Authors: Wayne L. Winston, Christian Albright

See More Books

Posted Date: Feb 22, 2023 05:16 AM

See More Questions

Consider the two mutually exclusive investment alternatives given in Table P7.41. TABLE P7.4I (a) Determine the IRR on the incremental investment in the amount of $5,000. (Assume that MARR = 10%.)...
It is desired to monitor project completion times by analysts in a consulting company. The magnitude and complexity of the project influence the completion time. It is also believed that the...
A manufacturing project has five independent phases whose completion must be sequential. The time to complete each phase is a random variable. The mean and standard deviation of the time for each...
Selected financial data for Petersen Corporations revenue and income (contribution) are reproduced below: Required: a. Use common-size statements to analyze every divisions (1) contribution to total...
How has the Internet changed job searching for individuals and recruiters? Has the change had a positive or a negative effect?
How the companies should do two factor authentication on social media?
Consider a stock price $S$ governed by the geometric Brownian motion process (a) Using $\Delta t=1 / 12$ and $S(0)=1$, simulate several (i.e., many) years of this process using either method,...
1. What forces for change are evident at the Oconomo plant? 2. What is the primary type of change neededchanging things or changing the people and culture? Can the Wisconsin plant be saved by...
Vulcan Company's contribution format Income statement for June is as follows: Vulcan Company Inco Stat For the Month Ende June 30 Sales Variable expens Contribution margin Fixed expenses Net...
"Part 1: The Performance Lawn Equipment database contains data needed to develop a pro forma income statement. Dealers selling PLE products all receive 18% of sales revenue for their part of doing...
2 2-j 3 0 1+2j 4 1 3-3j b) Let A = What are the values of the (B, C, D, E, and 2 5+2j 4j 2+3j 0 -1+j -3 5-j F) arrays after execution of each statement: 1) B=A' 2) C=[real(A) imag(A)] 3) D A ([4 3],...
3. Consider the following information on a 4-sector ("private-public-open") economy, where Y stands for the GDP and Ca, lg, and Xn are respectively consumption after tax, autonomous investment and...
code: # -*- coding: utf-8 -*- """ Created on Fri Nov 27 18:27:23 2020 @author: willi """ import numpy as np import matplotlib.pyplot as plt from matplotlib import cm L1=4.0;L2=5.0;a=1.0; # def...
2. 3. 4. a. Write the algorithm for Merge Sort. b. Derive the worst-case tight-bound notation of the algorithm stated in Question 1. a. Derive the upper-bound notation of the function given below...
implement a software for a Coffee House using Object Oriented Programming. If you are not familiar or comfortable with object-oriented programming, we suggest you give this article a quick read to...
Demonstrate your understanding of memory system by designing a basic ARM memory system with the following information An ARM memory system has 4 physical 4Kx8 EPROM memory located at 0000h. There are...
A manufacturing company produces a product that requires multiple components to be assembled. The company has two suppliers for each component: Supplier A and Supplier B. Each supplier has a...
(a) What is the focal length of a magnifying glass that gives an angular magnification of 8.0 when the image is at infinity? (b) How far must the object be from the lens?
State University is scheduling 24 sections of a large computer skills course in the Fall semester. There are eight time slots for these sections, four on Monday/ Wednesday (MW) and four on...
A triangle has a 5-inch side and a 12-inch side. To maximize the area of the triangle what should the third side be? Can you generalize this result?
Westhouser Paper Company in the state of Washington currently has an option to purchase a piece of land with good timber forest on it. It is now May 1. and the current price of the land is $22...
An entitys functional currency is: A. The currency of its parents country. B. The currency of its own country. C. The currency in which the financial statements are presented. D. The currency of the...
The variety of possible methods of foreign currency translation, and the different ways of treating gains arising, show that adequate harmonization for international comparison purposes is a long way...
Entity X based in one country (currency $) bought goods from Entity Y in another country (currency :) for :300,000 on 1 May 20X1. The spot rate on that date was $1 = :1. As at 31 December 20X1, the...

A project takes 1 year to complete and has a CAPEX of 10 mln. After completion, it

Question:

Expert Answer:

To calculate the projects internal rate of return IRR we need to determine the net cash flows for ea... View the full answer

Practical Management Science

Students also viewed these finance questions