A project has the following incremental cash flows: for years zero, though year 4, respectively. -$2,000,...

A project has the following incremental cash flows: for years zero, though year 4, respectively. -$2,000, $800, $700 $700, $100,000. The hurdle rate is 17%. Where is the IRR relative to this rate? A.) >70% B.) <10% C.) >100% D.) 3%

Expert Solution

jeff jeffy answered 4 months ago

A firm considers a project with the following cash flows: time-zero = -120,000, years 1-4 =...

A firm considers a project with the following cash flows: time-zero = -120,000, years 1-4 = 55,500, and the fifth year -90,000. Should the project be accepted if the cost of capital is 9%? a. No, the PI of the project is less than 1 b. No, the MIRR of the project is 9.16%. c. Yes, the IRR of the project is 10.04%. d. Yes, the NPV of the project is $1,310.63

Which of the following cash flows is NOT an incremental cash flow associated with a project...

Which of the following cash flows is NOT an incremental cash flow associated with a project to dig a new gold mine? Select one: a. The cost of taking on new employees who will be hired to work on the mine site. b. The cost of land which will be purchased for the new mine. c. The cost of mining equipment which will be purchased for the new mine. d. The cost of an environmental impact study which has been...

A project has the following cash flows for years 0 through 2, respectively: -10,556, 9,776, 9,987....

A project has the following cash flows for years 0 through 2, respectively: -10,556, 9,776, 9,987. What is the internal rate of return on this project?

Q1.) A project has the following cash flows for years 0 through 2, respectively: -13,568, 9,415,...

Q1.) A project has the following cash flows for years 0 through 2, respectively: -13,568, 9,415, 9,983. What is the internal rate of return on this project? Q2.) GDebi Enterprises is thinking of building a chemical processing plant to produce 4-hydroxy-3-methoxybenzaldehyde. The firm estimates that the initial cost of the project will be $11.7 million, and the plant will produce cash inflows of $7.2 million for the next 5 years, after which time the project will terminate. In the 6th...

Q1/ A project has the following cash flows for years 0 through 3, respectively: -34,416, 15,926,...

Q1/ A project has the following cash flows for years 0 through 3, respectively: -34,416, 15,926, 21,329, 38,250. If the required return is 10.6 percent, what is the net present value of the project? Q2/ A project has the following cash flows for years 0 through 2, respectively: -11,062, 8,666, 8,313. What is the internal rate of return on this project? Q3/ A project has the following cash flows, for years 0 through 3 respectively: -27,084, 11,112, 8,232, 9,204. If...

A project has the following cash flows for years 0 through 2, respectively: -10,529, 8,541, 8,441....

A project has the following cash flows for years 0 through 2, respectively: -10,529, 8,541, 8,441. What is the internal rate of return on this project?

Project A has the following Cash Flows: Cost = $1,200,000; Cash flows the following years as...

Project A has the following Cash Flows: Cost = $1,200,000; Cash flows the following years as follows: Year 1 = $274,600; Year 2 = $298,000; Year 3 = $303,950; Year 4 = $312,875; and Year 5 = $374,600. Calculate the Traditional Payback. Assume cash flows are even throughout the year. Calculate the Net Present Value using the WACC = 8.28%.

A project has cash flows of -$1,000. -$2,000, +$3,000, and +$4,000 in consecutive years. Your cost...

A project has cash flows of -$1,000. -$2,000, +$3,000, and +$4,000 in consecutive years. Your cost of capital is 30% per annum. Use the IRR rule to determine whether you should take this project and compare this result and approach with the net present value method. My answer: please check A project has cash flows of -$1,000. -$2,000, +$3,000, and +$4,000 in consecutive years. Your cost of capital is 30% per annum. Use the IRR rule to determine whether you...

A five-year project requires an investment of -172 and has the following cash flows in years...

A five-year project requires an investment of -172 and has the following cash flows in years 1 through 5, respectively (all cash flows in dollars): 135, -95, 238, -75, and 118. Without actually calculating any IRR, what is the maximum possible value any of the real IRRs could have? Give your answer as a percent with two decimals; e.g., 23.24

A five-year project requires an investment of -255 and has the following cash flows in years...

A five-year project requires an investment of -255 and has the following cash flows in years 1 through 5, respectively (all cash flows in dollars): 159, 83, 243, 125, and 172. Without actually calculating any IRR, what is the maximum possible value any of the real IRRs could have? Give your answer as a percent with two decimals; e.g., 23.24

Question