2. Calculate the IRR for the following project with the following cash flows: An initial outflow of $47,104 followed by inflows of $16,000, $17,000, and 18,000 at one-year intervals. a. 9% b. -9% c. 4% d. 2%
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- Calculate the IRR of a project requiring an investment outlay of $ 10,000 resulting in cash inflows of $2,000 at the end of Year 1, $5,000 at the end of Year 2, and $8,000 at the end of year 3. a. 19.79% b. 18.79% c. 20.79% d. 22.79%Calculate the IRR for a project with an initial outlay of $10,000 resulting in a single cash flow of $17,182 in 8 years. a. 7% b. 9% c. 10% d. 8%The following are the cash flows of two projects: Year 0 1 2 3 4 Project A $ (220) 100 100 100 100 Project B $ (220) 120 120 120 What are the internal rates of return on projects A and B? Note: Enter your answers as a percent rounded to 2 decimal places. Project A B IRR % %
- For a project with an initial investment of $30,000 and cash inflows of $12,000 a year for three years, calculate NPV given a required return (I/Y) of 3.65%. Select one: a. $1,265 b. $3,524 c. $4,839 d. $730Suppose a project costs $2,200 and produces cash flows of $640, $800 and $1,900 in each of the first three years, respectively. What is the IRR of the pioject? O 17.27% O 50.61% O 28.79% O 19.72% O 17.91%D. Cómpute the Pay-back period for a project that costs Sh.80,000 and yields the following cash flows for 5 years. Year 1 3 4. 5. Cash flows 10,000 30,000 15,000 20,000 30,000
- Here are the expected cash flows for three projects: Cash Flows (dollars) Year 2 Project A C Year 8 -6,588 -2,580 -6,500 Year 1 +1,375 +1,375 +2,588 +1,375 +1,375 Year 3 +3,758 +2,758 +3,750 Year 4 8 +3,750 +5,758 a. What is the payback period on each of the projects? b. If you use the payback rule with a cutoff period of 2 years, which projects will you accept? c. If you use a cutoff period of 3 years, which projects will you accept? d-1. If the opportunity cost of capital is 12%, calculate the NPV for projects A, B, and C. Note: Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places. d-2. Which projects have positive NPVs? e. "Payback gives too much weight to cash flows that occur after the cutoff date." True or false? a. Payback period b. If you use the payback rule with a cutoff period of 2 years, which projects will you accept? c. If you use a cutoff period of 3 years, which projects will you accept?…1. Consider the following investment projects: Year(n) Net cash flow Project 1 -$1,200 Project 2 -$2,000 1 600 1,500 2 1,000 1,500 IRR 19.65% 17.53% Determine the range of MARR for which Project 2 would be preferred over Project 18. Calculating IRR Compute the internal rate of return for the cash flows of the foilowing two projects. Cash Flows Year Project A Project B -$8,100 -$5,400 2,900 4,600 2,200 2. 2,700. 3,100 2,300
- Consider the following investment projects.Year (n) Net Cash FlowProject 1 Project 20 -$1,200 -$2,0001 600 1,5002 1,000 1,000IRR 19.65% 17.54%Determine the range of MARR where project 2 would be preferred over project 1.(a) MARR … 12.5%(b) 13% … MARR … 15%(c) 16% … MARR(d) Not enough information to determineCalculating IRR Compute the internal rate of return for the cash flows of the following two projects: Year Project A Project B 0 -$7,300 -$4,390 1 3, 940 2,170 2 3,450 2,210 3 2,480 1,730What is the internal rate of return for a project that has a net investment of $76,000 and net cash flows of $20,507 per year for 7 years? a. 18.2% b. 19% c. 16% d. 17%