Question

In: Finance

(IRR calculation​) Determine the IRR on the following​ projects: a. An initial outlay of ​$11,000 resulting...

(IRR calculation​) Determine the IRR on the following​ projects:

a. An initial outlay of ​$11,000 resulting in a single free cash flow of ​$17,051 after 6 years

b. An initial outlay of ​$11,000 resulting in a single free cash flow of ​$52,527 after 14 years

c. An initial outlay of ​$11,000 resulting in a single free cash flow of ​$113,017 after 19 years

d. An initial outlay of ​$11,000 resulting in a single free cash flow of ​$13,784 after 4 years

Solutions

Expert Solution

1- 2-
Year cash flow Year cash flow
0 -11000 0 -11000
1 0 1 0
2 0 2 0
3 0 3 0
4 0 4 0
5 0 5 0
6 17051 6 0
IRR = Using IRR function in MS excel IRR(E1406:E1412) 8% 7 0
8 0
3- 9 0
Year cash flow 10 0
0 -11000 11 0
1 0 12 0
2 0 13 0
3 0 14 52527
4 0 IRR = Using IRR function in MS excel IRR(H1406:H1420) 11.81%
5 0
6 0 4-
7 0 Year cash flow
8 0 0 -11000
9 0 1 0
10 0 2 0
11 0 3 0
12 0 4 13784
13 0 IRR = Using IRR function in MS excel IRR(H1425:H1429) 5.80%
14 0
15 0
16 0
17 0
18 0
19 113017
IRR = Using IRR function in MS excel IRR(E1417:E1436) 13.04%

Related Solutions

​(IRR calculation​) Determine the IRR on the following​ projects: a. An initial outlay of ​$9,000 resulting...
​(IRR calculation​) Determine the IRR on the following​ projects: a. An initial outlay of ​$9,000 resulting in a single free cash flow of ​$17,118 after 7 years ____% b. An initial outlay of ​$9,000 resulting in a single free cash flow of ​$46,991 after 13 years ____% c. An initial outlay of ​$9,000 resulting in a single free cash flow of ​$109,128 after 19 years ____% d. An initial outlay of ​$9,000 resulting in a single free cash flow of...
(IRR calculation​) Determine the IRR on the following​ projects: a. An initial outlay of $10,000 resulting...
(IRR calculation​) Determine the IRR on the following​ projects: a. An initial outlay of $10,000 resulting in a single free cash flow of $16,863 after 7 years b. An initial outlay of ​$10,000 resulting in a single free cash flow of $50,003 after 14 years c. An initial outlay of ​$10,000 resulting in a single free cash flow of $114,691 after 23 years d. An initial outlay of $10,000 resulting in a single free cash flow of ​$14,283 after 3...
(IRR calculation) Determine to the nearest percent the IRR on the following projects:
(IRR calculation) Determine to the nearest percent the IRR on the following projects: a. An initial outlay of $9,000 resulting in a free cash flow of $3,000 at the end of year 1, $6 ,000 at the end of year 2, and $8,500 at the end of year 3 b. An initial outlay of $9,000 resulting in a free cash flow of $8,500 at the end of year 1, ?$6,000 at the end of year 2, and $ 3,000 at...
Calculate the NPV at 9% and the IRR for the following projects: An initial outlay of...
Calculate the NPV at 9% and the IRR for the following projects: An initial outlay of $69,724 and an inflow of 15,000 followed by four consecutive inflows of $17,000
Determine the internal rate of return on the following​ project: An initial outlay of 9000 resulting...
Determine the internal rate of return on the following​ project: An initial outlay of 9000 resulting in a cash inflow of 1800 at the end of year​ 1, 4800 at the end of year 2, and 7800 at the end of year 3
1. (NPV and IRR​ calculation)East Coast Television is considering a project with an initial outlay of​...
1. (NPV and IRR​ calculation)East Coast Television is considering a project with an initial outlay of​ $X (you will have to determine this​ amount). It is expected that the project will produce a positive cash flow of $55,000 a year at the end of each year for the next 16 years. The appropriate discount rate for this project is 9 percent. If the project has an internal rate of return of 12 ​percent, what is the​ project's net present​ value?...
Calculate the internal rate of return on the following projects: Initial outlay of $50,000 with an...
Calculate the internal rate of return on the following projects: Initial outlay of $50,000 with an after-tax cash flow of $10,000 per year for eight years. Initial outlay of $600,000 with an after-tax cash flow of $120,000 per year for ten years. Initial outlay of $25,000 with an after-tax cash flow $11,500 per year for three years.
Project S requires an initial outlay at t = 0 of $11,000, and its expected cash...
Project S requires an initial outlay at t = 0 of $11,000, and its expected cash flows would be $6,500 per year for 5 years. Mutually exclusive Project L requires an initial outlay at t = 0 of $46,500, and its expected cash flows would be $14,500 per year for 5 years. If both projects have a WACC of 13%, which project would you recommend? Select the correct answer. a. Project S, since the NPVS > NPVL. b. Both Projects...
Project S requires an initial outlay at t = 0 of $11,000, and its expected cash...
Project S requires an initial outlay at t = 0 of $11,000, and its expected cash flows would be $7,000 per year for 5 years. Mutually exclusive Project L requires an initial outlay at t = 0 of $26,000, and its expected cash flows would be $10,800 per year for 5 years. If both projects have a WACC of 14%, which project would you recommend? Select the correct answer. a. Neither Project S nor L, since each project's NPV <...
Project S requires an initial outlay at t = 0 of $11,000, and its expected cash...
Project S requires an initial outlay at t = 0 of $11,000, and its expected cash flows would be $5,000 per year for 5 years. Mutually exclusive Project L requires an initial outlay at t = 0 of $26,500, and its expected cash flows would be $11,950 per year for 5 years. If both projects have a WACC of 12%, which project would you recommend? Select the correct answer: a. Neither Project S nor L, since each project's NPV <...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT