Answers
| IRR : IRR Means with a particular Percentage rate , At that point the present value become the zero | |||||||
| CALCULATION OF THE IRR OF THE PROJECT A | |||||||
| First we calculate randomly present value with @ 10% discounting rate | |||||||
| Years | Cash Flows | PVF @10% | Present Value | ||||
| 0 | -$8,800 | 1 | -$8,800.00 | ||||
| 1 | $3,400 | 0.9091 | $3,090.91 | ||||
| 2 | $4,200 | 0.8264 | $3,471.07 | ||||
| 3 | $3,000 | 0.7513 | $2,253.94 | ||||
| Net Present Value = | $15.93 | ||||||
| With PVF of 10% we are getting positive = | $15.93 | ||||||
| Secondly we calculate randomly present value @ 11 % discounting rate | |||||||
| Years | Cash Flows | PVF @ 11% | Present Value | ||||
| 0 | -$8,800 | 1 | -$8,800.00 | ||||
| 1 | $3,400 | 0.9009 | $3,063.06 | ||||
| 2 | $4,200 | 0.8116 | $3,408.81 | ||||
| 3 | $3,000 | 0.7312 | $2,193.57 | ||||
| Net Present Value = | -$134.55 | ||||||
| With PVF of 11 % we are getting negative = | -134.55 | ||||||
| So the differecne in both % net present value is = | $15.93 | "-" | -$134.55 | ||||
| Total is become = | $150.48 | ||||||
| So , the difference % = | $15.93 | "/"By | $150.48 | ||||
| So , the difference % = | 0.11 | ||||||
| So, the IRR = | 10.11% | ||||||
| Answer = IRR = | 10.11% | ||||||
| CALCULATION OF THE IRR OF THE PROJECT B | |||||||
| First we calculate randomly present value with @ 18% discounting rate | |||||||
| Years | Cash Flows | PVF @18% | Present Value | Cash Flows | |||
| 0 | -$6,400 | 1 | -$6,400.00 | -$6,400 | |||
| 1 | $1,900 | 0.8475 | $1,610.17 | $1,900 | |||
| 2 | $4,500 | 0.7182 | $3,231.83 | $4,500 | |||
| 3 | $2,600 | 0.6086 | $1,582.44 | $2,600 | |||
| Net Present Value = | $24.44 | ||||||
| With PVF of 18% we are getting positive = | $24.44 | ||||||
| Secondly we calculate randomly present value @ 19 % discounting rate | |||||||
| Years | Cash Flows | PVF @ 19% | Present Value | ||||
| 0 | -$6,400 | 1.0000 | -$6,400.00 | ||||
| 1 | $1,900 | 0.8403 | $1,596.64 | ||||
| 2 | $4,500 | 0.7062 | $3,177.74 | ||||
| 3 | $2,600 | 0.5934 | $1,542.88 | ||||
| Net Present Value = | -$82.74 | ||||||
| With PVF of 19 % we are getting negative = | -82.74 | ||||||
| So the difference in both % net present value is = | $24.44 | "-" | -$82.74 | ||||
| Total is become = | $107.18 | ||||||
| So , the difference % = | $24.44 | "/"By | $107.18 | ||||
| So , the difference % = | 0.23 | ||||||
| So, the IRR = | 18.23% | ||||||
| Answer = IRR = | 18.23% | ||||||
Similar Solved Questions
1 answer
How is this worked right answer provided i just keep messing up getting there somehow. Any...
How is this worked right answer provided i just keep messing up getting there somehow. Any help appreciated. 800 kHz radio signal is detected at a point 3.2 km distant from a transmitter tower. The electric field amplitude of the signal at that point is 690 mV/m. Assume that the signal power is r...
1 answer
12 Months Ended Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions...
12 Months Ended Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions Jan. 31, Jan. 31, You Must Use Excel Formulas in Yellow Boxes 2018 2017 Revenues: Horizontal Horizontal Dollar Value Percent $495,761 $481,317 Net sales Membership and other income 4,582 4,556 Total revenue...
1 answer
Redox titrations
Iron in the +2 oxidation state reacts with potassium dichromate to produce Fe3+ and Cr3+ according to the equation6 Fe2+ + Cr2O72- + 14 H+? 6 Fe3+ + 2 Cr3+ + 7 H2O.How many milliliters of 0.1848 M K2Cr2O7 will be required to titrate 250.0 mL of 0.122 M Fe2+?(Fe = 55.847 g/mol, Cr = 51.9961 g/mol, H ...
1 answer
(d) A particle of mass m is moving at a speed u and hits an identical particle that is siting at ...
(d) A particle of mass m is moving at a speed u and hits an identical particle that is siting at rest. What are their four-momenta in the center of mass frame (e) In the center of mass frame, the collision of the two particles in part (d) causes the particles to fuse and create a single particle wit...
1 answer
2. Ansou signal i1 sampled with 600 samplehm rate. What look lke d be the be-y...
2. Ansou signal i1 sampled with 600 samplehm rate. What look lke d be the be-y d the smed卬 look ke...
1 answer
Find the distance in nm between two slits that produces the first minimum for 400-nm violet...
Find the distance in nm between two slits that produces the first minimum for 400-nm violet light at an angle of 49.5°. X nm...
1 answer
How many moles of C_3H_6 will be consumed when 4.11 moles of CO_2 are produced in...
How many moles of C_3H_6 will be consumed when 4.11 moles of CO_2 are produced in the following equation? 2C_3H_6 + 9O_2 righrtarrow 6CO_2 + 6H_2O...
1 answer
Advanced Accounting II Chapter 19- Income Taxes Problem 1. Garrison Designs, Inc., a corporation organized on...
Advanced Accounting II Chapter 19- Income Taxes Problem 1. Garrison Designs, Inc., a corporation organized on January 1, 2008. reported the following incomes (losses) for the ten-year period, 2008-2017: Year Income (Loss) Income Tax Rate 2008 S 16,000 50% 2009 (40,000) 50% 2010 16,000 48% 2011 24,00...
1 answer
P3-2 (book/static) For the factors listed below, indicate whether they significantly contribute to the use of...
P3-2 (book/static) For the factors listed below, indicate whether they significantly contribute to the use of accrual accounting for financial reports (rather than using the cash basis). Significant contributor Yes or No Yes b. Factor a. Establishment of accounting standard setters such as the Inter...
1 answer
Assume a member is selected at random from the population represented by the graph. Find the...
Assume a member is selected at random from the population represented by the graph. Find the probability that the member selected at random is from the shaded area of the graph. Assume the variable x is normally distributed SAT Critical Reading Scores 200 x475 H-513 107 só0 200 475 Seore The ...
1 answer
Repair and Maintenance (R&M) System The process begins when the Production Staff notices that equipment in...
Repair and Maintenance (R&M) System The process begins when the Production Staff notices that equipment in the production department needs maintenance. The Production Staff will prepare 2 copies of the Service Request. The Service Request is approved by the Production Manager. Copy 1 of the Serv...
1 answer
27.4 Anaerobic bacteria use the glycolysis reaction, CAH,Os(aq) + 2 CH2CH(OH)COOH(aq), as a source of en-...
27.4 Anaerobic bacteria use the glycolysis reaction, CAH,Os(aq) + 2 CH2CH(OH)COOH(aq), as a source of en- ergy. In the reaction, glucose, CoH12O6, is first converted to pyruvic acid, CH3COCOOH, which is then converted to lactic acid, CH2CH(OH)COOH, through the action of the enzyme lactate dehydrogen...
1 answer
< Previous Next > You have not submitted your answer. If you do not answer this...
< Previous Next > You have not submitted your answer. If you do not answer this question correctly in attempts, you can get a hint. a) What is the energy stored in the 9.5 F capacitor of a heart defibrillator charged to 9.75 x 10' V? b) Find the amount of stored charge. a mc Submit answer...
1 answer
A molecule or ion that donates the hydrogen in a hydrogen bond is a hydrogen bond...
A molecule or ion that donates the hydrogen in a hydrogen bond is a hydrogen bond donor A molecule or ion that binds to this hydrogen is a hydrogen bond acceptor. Specify the hydrogen bonding behavior of the 4 species below by selecting: donor for species that act as donors only acceptor for species...
1 answer
What microeconomic forces impacted the landing the most?
what microeconomic forces impacted the landing the most?...
1 answer
Omets travel around the sun in elliptical orbits with large eccentricities. If a comet has speed...
omets travel around the sun in elliptical orbits with large eccentricities. If a comet has speed 2.0×104 m/s when at a distance of 2.4×1011 m from the center of the sun, what is its speed when at a distance of 6.0×1010 m . Express your answer using two significant figures. v= ?m/s ...