Discount Rate of Return & Investment Rate of Return

Related BrainMass Solutions

• Accounting and annual rates of return

  Calculate the approximate annual rate of return on investment of the following cash discount terms: 1/15, net 30 2/10, net 60 1/10, net 90 Recall the following: Annual rate of return = [Discount %/(100%-Discount %)]* [Number of days in a year/

• NPV of an investment opportunity

  Calculate the investment rate of return and the NPV of an investment opportunity. Also analyses the impact of inflation on the NPV of the project.

• Discount rate;investment with the cash flow

  If the required rate of return for this investment is 15.25 percent, should you accept the investment based solely on the internal rate of return rule? Why or why not? Question 1 .

• Accounting 4

  The proposal's rate of return is less than the minimum rate required. c. The proposal earns a rate of return between 10% and 12%. d. None of the above. 17.

• Stock Valuation

  of return on the stock investment.

• Question about Finance problems: IRR and NPV.

  IRR, on the other hand, computes a break-even rate of return. It shows the discount rate below which an investment results in a positive NPV and above which an investment results in a negative NPV.

• Calculate the Discount Rate

  rate based on the return on investment.

• present value of cash flow

  present value of cash flow What happens to the present value of a cash flow stream when the discount rate increases? When the discount rate increases, the present value of a cash flow stream will decrease.

• Key financial metrics for this capital budgeting projectkey financial metrics for this capital budgeting project

  This rate is then compared with the project discount rate and the project given the go ahead.
  
  Modified rate of return The average rate of return is calculated on accounting income.

• Creating Value by investing with a return below firm's WACC

  Making an investment with a return below the firm's cost of capital can create value if it is a low risk investment and the lower risk justifies a discount rate less than the firm's cost of capital.