Internal rate of return
Not what you're looking for?
2.
Year Cash flow
0 -169,000
1 46,200
2 87,300
3 41,000
4 39,000
Required Payback Period 2.5
Required AAR 7.25%
Required Return 8.50%
Reference: 06_01
Based on the internal rate of return of _____for this project, you should _____ the project. (Points: 2)
8.95%; accept
10.75%; accept
8.44%; reject
9.67%; reject
10.33%; reject
3. The internal rate of return (IRR):
(I) rule states that a typical investment project with an IRR that is less than the required rate should be accepted.
(II) is the rate generated solely by the cash flows of an investment.
(III) is the rate that causes the net present value of a project to exactly equal zero.
(IV) can effectively be used to analyze all investment scenarios. (Points: 2)
I and IV only
II and III only
I, II, and III only
II, III, and IV only
I, II, III, and IV
Purchase this Solution
Solution Summary
This provides the steps to calculate the internal rate of return
Solution Preview
internal rate of return 2
2.
Year Cash flow
0 -169,000
1 46,200
2 87,300
3 41,000
4 39,000
Required Payback Period 2.5
Required AAR 7.25%
Required Return 8.50%
Reference: 06_01
Based on the internal rate of return of _____for ...
Purchase this Solution
Free BrainMass Quizzes
SWOT
This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.
Motivation
This tests some key elements of major motivation theories.
Balance Sheet
The Fundamental Classified Balance Sheet. What to know to make it easy.
Marketing Research and Forecasting
The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.
Paradigms and Frameworks of Management Research
This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.