3SkippedProblem 8-5 Calculating IRR [LO 3]A firm evaluates all of its projects by applying the IRR rule.Cash FloweBookPrintReferencesYear0-$ 41,000120,00023,00014,00023a. What is the project's IRR?Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.b. If the required return is 14 percent, should the firm accept the project?a. Internal rate of returnb. Project acceptance%

Answered: Image /qna-images/answer/dedf6634-58ad-48db-bc0f-fb5e02db1884.jpg

Answered: 3 Skipped Problem 8-5 Calculating IRR…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

6 ES 02:24:16 Book Hint G Print erences A firm evaluates all of its projects by applying the NPV decision rule. A project under consideration has the following cash flows: Year 0 1 2 3 NPV Cash Flow What is the NPV for the project if the required return is 10 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) -$ 28,200 12,200 15,200 11,200 NPV $ At a required return of 10 percent, should the firm accept this project? No Yes 4,961.00 What is the NPV for the project if the required return is 26 percent? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Project X cash flows is given on the timeline below 0. 2. 3 4. Project X -$10,000 $6.500 $3,000 $3.000 $1.000 Calculate Project X NPV if WACC-9% Round your answer to the nearest hundredth, have at least two decimal digits and write it in the Answer field. Would you accept or reject the project (write in the textbox below the answer field)?
24 es Year 01234 a. What is the IRR of this project? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g.. 32.16.) IRR Cash Flows $9,800 -4,300 -3,300 -2,500 -2,300 b. If the appropriate discount rate is 10 percent, should you accept this project? O Reject O Accept c. If the appropriate discount rate is 20 percent, should you accept this project? O Reject O Accept d-1. What is the NPV of the project if the appropriate discount rate is 10 percent? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) d-2. What is the NPV of the project if the appropriate discount rate is 20 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) d-1. NPV d-2. NPV
Consider projects A and B: Cash Flows (dollars) Project A Co -30,500 C1 C2 21,400 21,400 NPV at 11% +$6,148.00 B -50,500 33,500 33,500 + 6,869.53 a. Calculate IRRS for A and B. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Project A B IRR % % b. Which project does the IRR rule suggest is best? O Project A ○ Project B c. Which project is really best? ○ Project A O Project B k
Details WACC 0 SGWN-O 1 2 3 4 5 6 7.80% Project A Project B -1225 395 402 423 432 489 512 -2146 592.5 603 634.5 648 733.5 768 1. Construct NPV profile table by using cashflows from Project A and B above. 2. Draw NPV profile 3. Compute crossover rate To receive EC your work has to be done in Excel.
QUESTION 12 You invest $55 000 today into a project with a life of 4 years and which is expected to generate the following cash flows. Year 1. Cashflow 12 000 27 300 2 329 22 000 If you require to invest in projects with a payback period of 2.8 years or less, would this project be suitable? For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BIUS Paragraph Arial 10pt 27C Rain showers I!! II
Spreadsheet Link What is the IRR of the following project? Cash Flow Year 0 32.000 9,000 1. 2 10,000 15,200 7,800 4. 1) 10.8% 2) 11.2% • 3) 11.7% 4) 12.0% 5) 12.3% 234
23 Compute the payback statistic for Project A if the appropriate cost of capital is 8 percent and the maximum allowable payback period Project A Time: Cash flow: 4. $360 2. 3. 1. Should the project be accepted or rejected? O accepted O rejected < Prev 40 of 40 Next pe here to search 近。 F4 F5 F7 F10 F11 F12 70
Spreadsheet Link What is the IRR of the following project?Cash FlowYear0 -32,0001. 9,0002. 10,0003. 15,0004. 7,800 1). 10.8% 2). 11.2% 3). 11.7%4). 12.0% 5). 12.3%
QUESTION 6 A project has the following cash flows: Year 0 1 2 ων 3 Cash flows -$85 30 35 40 If the required return is 15%, what is the IRR of this project? 9% 10% 11% 12% 15% Click Save and Submit to save and submit. Click Save All Answers to save all answers.
Question 12, P 8-30 (similar to) Part 1 of 6 > HW Sc Poi You are considering the following two projects and can take only one. Your cost of capital is 10.6%. The cash flows for the two projects a a. What is the IRR of each project? b. What is the NPV of each project at your cost of capital? c. At what cost of capital are you indifferent between the two projects? d. What should you do? a. What is the IRR of each project? The IRR for project A is ☐ %. (Round to one decimal place.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Project A B Year 0 - $99 Year 1 $27 $99 $49 Year 2 $32 $38 Print Done Year 3 Year 4 $38 -$49 $32 $22
MYUSF x|困 My Home CengageNOWv2 |Online teachin X gagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inpro... 844 A project has estimated annual net cash flows of $66,600. It is estimated to cost $466,200. Determine the cash payback period. Round the answer to one decimal place. years Chapter 26 TAKE HOME EXAM Content Area

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS