Question: What is the IRR method?

What is the IRR method?

Step by Step Solution

★★★★★

3.57 Rating (175 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

The IRR or the internal rate of return is the discount rate that makes the net ... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

141-B-C-F-C-B (403).docx

120 KBs Word File

Students Have Also Explored These Related Corporate Finance Questions!

Q:

What is the IRR of a project that costs $45,000 if it is expected to generate $15,047 per year for five years?

Q:

What is the IRR for the following cash flow? (5.6) (a) 12.95% (b) 11.95% (c) 4.36% (d) 10.05% (e) 11.05% Year End Cash Flow (S) 2,500 1,000 1,000 1,000 1,000 0 2

Q:

What is the IRR of the following set of cash flows? Year ___________Cash Flow 0 ...................... -$19,500 1 .......................... 9,800 2 ........................ 10,300 3...

Q:

BLC Inc. is a medium-sized manufacturing company based in the UK. The company operates mainly in the London area and is based in Peterborough. At a recent board meeting, the company decided to expand...

Q:

a. According to the NPV method, which project should be chosen? How does this differ from the answer under the IRR? b. If Kay had not put a limit on the size of the capital budget, under the NPV...

Q:

Please create an excel spreadsheet with formulas for requirement 5 (pages 24-27)and requirement 6 (pages 28-31)only. Please submit in excel format. Both questions and answers are provided for...

Q:

I need the answer for all question not only number 5 please I need the answer for all question .you answer number 5 only Rashid continues "Also, there is the issue of comparison. If I need to compare...

Q:

How do I solve the Mirr, discounted payback method, after tax salvage, dividend payout ratio, and cash receipts I have the answers I just need to know how to solve these questions the easiest way and...

Q:

Evaluating cash flows with the NPV method The net present value (NPV) rule is considered one of the most common and preferred criteria that generally lead to good investment decisions. Consider this...

Q:

2. Financial appraisal of investment projects The NextGen project is an example of how the financial appraisal of an investment project is conducted at Cengage Learning. The NextGen project passed...

Q:

The file P12_11.xlsx contains monthly values of the U.S. national debt (in dollars) from 1993 to early 2010. Fit an exponential growth curve to these data. Write a short report to summarize your...

Q:

Assume that two samples are selected from independent normally distributed populations. a. At the 0.05 level of significance, is there evidence of a difference between 21 and 22 b. Suppose that you...

Q:

A corporate bond has a bid - ask spread of 9 7 - 9 8 . What is the dollar value of the spread? A $ 1 B $ 1 0 $ 1 0 0 $ 1 0

Q:

14.14 Another logistic model for cell phones and age. Refer to the previous exercise. Suppose that you use the actual value of age in years as the explanatory variable in a logistic regression model....

Q:

What are some of the major external and internal factors that affect a firms stock price? What is the difference between the two general types of factors?

Q:

Identify the sources of agency costs. What are some ways these costs can be controlled in a company?

Q:

What is the Sarbanes-Oxley Act, and what is its focus? Why does it focus in these areas?

Q:

Make the financial ratios analysis of MyDeco Corporation Financial Statements & Stock Price: MyDeco Corp. (66.7) (All data as of fiscal year end; in $ million) 2009 2010 2011 2012 2013 404.3 363.8...

Q:

written work please not excel Question 13 (14 points) Best Ever Results Inc. has a project under consideration with the following estimated cash flows: An initial investment of $420,000. A return of...

Q:

Ross White's machine shop uses 2,500 brackets during the course of a year, and this usage is relatively constant throughtout the year. These brackets are purchased from a supplier 100 miles away for...