Question

In: Finance

Project L costs $59,263.48, its expected cash inflows are $13,000 per year for 10 years, and...

Project L costs $59,263.48, its expected cash inflows are $13,000 per year for 10 years, and its WACC is 10%. What is the project's IRR? Round your answer to two decimal places.

Solutions

Expert Solution

Ans 17.60%

Year Project Cash Flows (i) DF@ 10% DF@ 10% (ii) PV of Project ( (i) * (ii) ) DF@ 20% (iii) PV of Project ( (i) * (iii) )
0 -59263.48 1 1                    (59,263.48) 1        (59,263.48)
1 13000 1/((1+10%)^1) 0.909                     11,818.18 0.833          10,833.33
2 13000 1/((1+10%)^2) 0.826                     10,743.80 0.694            9,027.78
3 13000 1/((1+10%)^3) 0.751                       9,767.09 0.579            7,523.15
4 13000 1/((1+10%)^4) 0.683                       8,879.17 0.482            6,269.29
5 13000 1/((1+10%)^5) 0.621                       8,071.98 0.402            5,224.41
6 13000 1/((1+10%)^6) 0.564                       7,338.16 0.335            4,353.67
7 13000 1/((1+10%)^7) 0.513                       6,671.06 0.279            3,628.06
8 13000 1/((1+10%)^8) 0.467                       6,064.60 0.233            3,023.38
9 13000 1/((1+10%)^9) 0.424                       5,513.27 0.194            2,519.49
10 13000 1/((1+10%)^10) 0.386                       5,012.06 0.162            2,099.57
NPV                     20,615.89 NPV          (4,761.34)
IRR = Ra + NPVa / (NPVa - NPVb) * (Rb - Ra)
10% + 20615.89 / (20615.89 + 4761.34 )*10%
17.60%

Related Solutions

Project L costs $55,000, its expected cash inflows are $13,000 per year for 10 years, and...
Project L costs $55,000, its expected cash inflows are $13,000 per year for 10 years, and its WACC is 14%. What is the project's NPV? Round your answer to the nearest cent. Do not round your intermediate calculations.
Project L costs $64,749.69, its expected cash inflows are $13,000 per year for 10 years, and...
Project L costs $64,749.69, its expected cash inflows are $13,000 per year for 10 years, and its WACC is 14%. What is the project's IRR? Round your answer to two decimal places.
Project L costs $65,501.59, its expected cash inflows are $13,000 per year for 11 years, and...
Project L costs $65,501.59, its expected cash inflows are $13,000 per year for 11 years, and its WACC is 12%. What is the project's IRR? Round your answer to two decimal places.
Project L costs $62,392.42, its expected cash inflows are $13,000 per year for 11 years, and...
Project L costs $62,392.42, its expected cash inflows are $13,000 per year for 11 years, and its WACC is 13%. What is the project's IRR? Round your answer to two decimal places.
Project L costs $61,265.72, its expected cash inflows are $13,000 per year for 9 years, and...
Project L costs $61,265.72, its expected cash inflows are $13,000 per year for 9 years, and its WACC is 14%. What is the project's IRR? Round your answer to two decimal places.
Project L costs $55,000, its expected cash inflows are $13,000 per year for 8 years, and...
Project L costs $55,000, its expected cash inflows are $13,000 per year for 8 years, and its WACC is 7%. What is the project's discounted payback? Round your answer to two decimal places.
Project L costs $35,000, its expected cash inflows are $13,000 per year for 8 years, and...
Project L costs $35,000, its expected cash inflows are $13,000 per year for 8 years, and its WACC is 10%. What is the project's MIRR? Round your answer to two decimal places. Do not round your intermediate calculations. %
Project L costs $55,000, its expected cash inflows are $13,000 per year for 8 years, and...
Project L costs $55,000, its expected cash inflows are $13,000 per year for 8 years, and its WACC is 7%. What is the project's discounted payback? Do not round intermediate calculations. Round your answer to two decimal places.
Project L costs $45,000, its expected cash inflows are $13,000 per year for 8 years, and...
Project L costs $45,000, its expected cash inflows are $13,000 per year for 8 years, and its WACC is 9%. What is the project's MIRR? Do not round intermediate calculations. Round your answer to two decimal places.
Project L costs $35,000, its expected cash inflows are $13,000 per year for 11 years, and...
Project L costs $35,000, its expected cash inflows are $13,000 per year for 11 years, and its WACC is 14%. What is the project's NPV? Round your answer to the nearest cent. Do not round your intermediate calculations. Project L costs $65,631.23, its expected cash inflows are $13,000 per year for 11 years, and its WACC is 10%. What is the project's IRR? Round your answer to two decimal places. Project L costs $75,000, its expected cash inflows are $9,000...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT