Determine the internal rate of return (IRR) for each of the following projects. a. An initial...

Transcribed Image Text:

Determine the internal rate of return (IRR) for each of the following projects. a. An initial outlay of $10,500 resulting in a cash flow of $100,000 after 15 years. b. An initial outlay of $9,000 resulting in a cash flow of $14,000 after 4 years. c. An initial outlay of $11,000 resulting in a cash flow of $2,000 at the end of each year for the next 12 years. d. An initial outlay of $12,000 resulting in a cash flow of $3,000 at the end of each year for the next 6 years. e. An initial outlay of $12,000 resulting in a cash flow of $3,000 at the beginning of each year for the next 6 years. Question 2- Payback period, true payback period. NPV, PI. & IRR Use the following information for ABC company to apply the techniques below. Initial outlay - S 75,000 19,000 5,00 11.00% Annual cash flow- Years of project- Required rate of return- a. What is the project's payback period? b. What is the project's true payback period? c. What is the project's net present value (NPV)? d. What is the project's profitability index (PI)? Determine the internal rate of return (IRR) for each of the following projects. a. An initial outlay of $10,500 resulting in a cash flow of $100,000 after 15 years. b. An initial outlay of $9,000 resulting in a cash flow of $14,000 after 4 years. c. An initial outlay of $11,000 resulting in a cash flow of $2,000 at the end of each year for the next 12 years. d. An initial outlay of $12,000 resulting in a cash flow of $3,000 at the end of each year for the next 6 years. e. An initial outlay of $12,000 resulting in a cash flow of $3,000 at the beginning of each year for the next 6 years. Question 2- Payback period, true payback period. NPV, PI. & IRR Use the following information for ABC company to apply the techniques below. Initial outlay - S 75,000 19,000 5,00 11.00% Annual cash flow- Years of project- Required rate of return- a. What is the project's payback period? b. What is the project's true payback period? c. What is the project's net present value (NPV)? d. What is the project's profitability index (PI)?

Answer rating: 100% (QA)

Solution To calculate the internal rate of return IRR for each project we need to find the discount ... View the full answer