Question

In: Finance

This problem is useful for testing the ability of financial calculator and spreadsheets. Consider the following...

This problem is useful for testing the ability of financial calculator and spreadsheets. Consider the following cash flows How many different IRRs are there? (hint: search between 20 percent and 70 percent When should we take this project?

Year Cash Flow
0 $ (3,024.00)
1 $ 17,172.00
2 $(36,420.00)
2 $ 34,200.00
4

$ (1,200.00)

Create an NPV profile graph in excel

Solutions

Expert Solution

There is no IRR between 20% and 70%. IRR is 180.36%


Related Solutions

9. TI Calculator Graded Problem Set You are conducting a study testing whether a child’s age...
9. TI Calculator Graded Problem Set You are conducting a study testing whether a child’s age is a good predictor of his or her height. You have collected the following data from a random sample of seven children: Age (months) Height (cm) 34   77 5 0   95 63   109 59   99 53   101 44    106 40    94 Perform a regression of height (dependent variable) on age (independent variable). What is the Y-intercept of the regression line? 43.73 52.81 60.46 24.73 59.70 What is the slope...
Instructions to solve the problem: You are required to use a financial calculator or spreadsheet (Excel)...
Instructions to solve the problem: You are required to use a financial calculator or spreadsheet (Excel) to solve the problem related to the cost of capital. You are required to show the following 3 steps for the problem. (i) Describe and interpret the assumptions related to the problem. (ii) Apply the appropriate mathematical model to solve the problem. (iii) Calculate the correct solution to the problem. Submit all answers as percentages and round to two decimal places. Problem: Cosa Nostra...
eBook Problem 7-31 Use a financial calculator or a program such as Excel to answer the...
eBook Problem 7-31 Use a financial calculator or a program such as Excel to answer the questions. Round your answers to the nearest whole number. You purchase a stock for $9,000 and collect $300 at the end of each year in dividends. You sell the stock for $10,500 after five years. What was the annual return on your $9,000 investment?   % You purchase a building for $850,000, collect annual rent (after expenses) of $110,000, and sell the building for $950,000...
Find the following values using the equations and then a financial calculator.
Find the following values using the equations and then a financial calculator. Compounding/discounting occurs annually. Do not round intermediate calculations. Round your answers to the nearest cent.a. An initial $400 compounded for 1 year at 7%.b. An initial $400 compounded for 2 years at 7%c. The present value of $400 due in 1 year at a discount rate of 7%.d. the present value of $400 due in 2 years at a discount rate of 7%
(This problem can be done using either a spreadsheet or your financial calculator. In either case,...
(This problem can be done using either a spreadsheet or your financial calculator. In either case, show all of your work. In the case of a spreadsheet, please print out the entire spreadsheet and indicate where your answers to the various parts of this problem can be found.) A borrower is given a choice between taking out a CPM loan for $250,000 at an interest rate of four percent (4.00%), or to pay two points and receive an interest rate...
Do the following problem by hand using TI30Xa calculator. Do the problem on a fresh sheet...
Do the following problem by hand using TI30Xa calculator. Do the problem on a fresh sheet of paper (college ruled, printer paper or engineering paper). Find the decrease in pressure expected in an NFL football if it was inflated in a room at 80oF, left in the room for a while, and brought to field at 40oF, and left there for a while. Use the ideal gas law to find the decrease in pressure as a number in psi. The...
The statement of cash flows is not useful for:   a. Determining a company's ability to...
The statement of cash flows is not useful for:   a. Determining a company's ability to pay its debts.     b. Planning future investing and financing activities.     c. Determining a company's ability to pay dividends.     d. Calculating the net worth of a company.
Explain the normal distribution and how useful it is in statistics? Consider the demonstration problem 6.3...
Explain the normal distribution and how useful it is in statistics? Consider the demonstration problem 6.3 which uses a normal distribution to determine the probability associated with generating between 3.6 and 5 pounds of waste per year. Discuss any one of the following concepts associated with this problem. What are the “clues” that the problem can be solved with the use of the normal distribution? What is the relationship between the x value (e.g 3.6) and the z score? How...
13. Which of the following is not an advantage of partnership? a. Ability to pool financial...
13. Which of the following is not an advantage of partnership? a. Ability to pool financial resources b. Ability to share responsibilities and capitalize on complementary skills c. Potential for disagreement d. Ease of formation e. Possible tax advantages 14. Which one is a disadvantage of partnership? a. Unlimited liability b. Potential for disagreement c. Lack of continuity d. Difficulty in withdrawing from a partnership 23. Which of the following is not a correct statement about LLC? a. LLCs are...
Find the following values, using the equations, and then work the problems using a financial calculator...
Find the following values, using the equations, and then work the problems using a financial calculator to check your answers. Disregard rounding differences. (Hint: If you are using a financial calculator, you can enter the known values and then press the appropriate key to find the unknown variable. Then, without clearing the TVM register, you can "override" the variable that changes by simply entering a new value for it and then pressing the key for the unknown variable to obtain...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT