The PV factor 4.21442 for 5 years is closest to 6% Internal rate of return =...

The PV factor 4.21442 for 5 years is closest to 6%
Internal rate of return = 6% how to calculte irr from pv factor please tell me method how to see from pv table

Expert Solution

Hi

Let me know in case you face any issue:

ekkarill92 answered 1 year ago

A project's internal rate of return (IRR) is the that forces the PV of its inflows...

A project's internal rate of return (IRR) is the that forces the PV of its inflows to equal its cost. The IRR is an estimate of the project's rate of return, and it is comparable to the on a bond. The equation for calculating the IRR is: CFt is the expected cash flow in Period t and cash outflows are treated as negative cash flows. There must be a change in cash flow signs to calculate the IRR. The IRR...

What is the PV of $779 per year for 5 years if the required return is...

What is the PV of $779 per year for 5 years if the required return is 8.5% (assume the $779 payments come at the end of each of the next 5 years)? Answer to 2 decimal places.

4) The firms use both Net PV method and IRR (Internal Rate of Return) Method to...

4) The firms use both Net PV method and IRR (Internal Rate of Return) Method to evalauate investments. The IRR method, however, have some problems. The three problems cited regarding IRR are a) Re-investment assumption b) Multiple Root Problem c) Unconventional Cash Flow Problem. What are these problems? Explain these problems clearly by giving examples if necessary .

Internal rate of return and net present value are related in that: Internal rate of return...

Internal rate of return and net present value are related in that: Internal rate of return formed the basis for the eventual development of the net present value theory. Internal rate of return finds a discount rate that produces a net present value of zero. Net present value formed the basis for the eventual development of the internal rate of return theory. Net present value can only be used to evaluate irregular cash flows, whereas internal rate of return can...

Calculator Internal Rate of Return Method The internal rate of return method is used by King...

Calculator Internal Rate of Return Method The internal rate of return method is used by King Bros. Construction Co. in analyzing a capital expenditure proposal that involves an investment of $73,600 and annual net cash flows of $10,000 for each of the 10 years of its useful life. Present Value of an Annuity of $1 at Compound InterestYear6%10%12%15%20%10.9430.9090.8930.8700.83321.8331.7361.6901.6261.52832.6732.4872.4022.2832.10643.4653.1703.0372.8552.58954.2123.7913.6053.3522.99164.9174.3554.1113.7843.32675.5824.8684.5644.1603.60586.2105.3354.9684.4873.83796.8025.7595.3284.7724.031107.3606.1455.6505.0194.192 a. Determine a present value factor for an annuity of $1 which can be used in determining the internal rate of return....

4. Internal rate of return (IRR) The internal rate of return (IRR) refers to the compound...

4. Internal rate of return (IRR) The internal rate of return (IRR) refers to the compound annual rate of return that a project generates based on its up-front cost and subsequent cash flows. Consider the case of Blue Pencil Publishing: Consider the following case: Blue Pencil Publishing is evaluating a proposed capital budgeting project (project Sigma) that will requ ire an initial investment of $800,000. Blue Pencil Publishing has been basing capital budgeting decisions on a project's NPV; however, its...

Internal Rate of Return Method The internal rate of return method is used by Testerman Construction...

Internal Rate of Return Method The internal rate of return method is used by Testerman Construction Co. in analyzing a capital expenditure proposal that involves an investment of $75,285 and annual net cash flows of $15,000 for each of the 10 years of its useful life. Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 1.833 1.736 1.690 1.626 1.528 3 2.673 2.487 2.402 2.283 2.106...

What is Internal rate of return?

4. Internal rate of return (IRR) Aa Aa The internal rate of return (IRR) refers to...

4. Internal rate of return (IRR) The internal rate of return (IRR) refers to the compound annual rate of return that a project generates based on its up-front cost and subsequent cash flows. Consider this case: Consider the following case: Fuzzy Badger Transport Company is evaluating a proposed capital budgeting project (project Delta) that will require an initial investment of $1,500,000 Fuzzy Badger Transport Company has been basing capital budgeting decisions on a project's NPV; however, its new CFO wants to start using the...

Internal rate of return and modified internal rate of return. Quark Industries has three potential projects,...

Internal rate of return and modified internal rate of return. Quark Industries has three potential projects, all with an initial cost of $1,600,000. Given the discount rate and the future cash flow of each project in the following table, Cash Flow Project M Project N Project O Year 1 $400,000 $500,000 $900,000 Year 2 $400,000 $500,000 $700,000 Year 3 $400,000 $500,000 $500,000 Year 4 $400,000 $500,000 $300,000 Year 5 $400,000 $500,000 $100,000 Discount rate 9% 14% 17%

Question