Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

problem: Consider the project with the given expected cash flows:

Year 

Cash flow

0

-$ 500000

1

$100,000

2

$110,000

3

$550,000

[A] If the discount rate is 0%, compute the project's net present value?
[B] If the discount rate is 4%, compute the project's net present value?
[C] If the discount rate is 8%, compute the project's net present value?
[D] If the discount rate is 10%, compute the project's net present value?
[E] Compute this project's internal rate of return?

Now make a chart where the discount rate is on the horizontal axis (the "x" axis) & the net present value on the vertical axis [the Y axis]. Create the net present value of the project as a function of the discount rate by dots for the 4 discount rates. Connect the 4 points using a free hand 'smooth' curve. The curve intersects the horizontal line at a particular discount rate. find out the discount rate at which the graph intersects the horizontal axis?

Look at the graph you draw & prepare a short paragraph stating what the graph 'shows'. 

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M918218

Have any Question? 


Related Questions in Basic Finance

1 in a transportation firm what types of things will change

1. In a transportation firm, what types of things will change operating revenues? Operating expenses? 2. If a transportation firm shows a rise in revenue per passenger mile, what does this increase imply? 3. How is the p ...

How is the practice of risk management similar to hedging

How is the practice of risk management similar to hedging and how is it different? Identify why risk management can be beneficial to stockholders? Explain the difference between market risk and credit risk. Are technique ...

An electronic retail chain wishes to minimize its ordering

An electronic retail chain wishes to minimize its ordering costs for a particularly popular model of laptop computer. This retail has a line credit to finance its inventory and the current holding rate is 5.5%. The chain ...

1 describe the circumstances in which it is acceptable to

1. Describe the circumstances in which it is acceptable to conduct research without obtaining informed consent from human participants. 2. What does IRB stand for, and what is its purpose? 3. Is it acceptable for researc ...

1 what do you see as the biggest challenges in conducting a

1. What do you see as the biggest challenges in conducting a brand audit? What steps would you take to overcome them? 2. Pick a brand. See if you can assemble a brand inventory for it.

1 is a foreclosure sale sometimes desirable or even

1. Is a foreclosure sale sometimes desirable or even necessary when the mortgagor is willing to give a voluntary deed? 2. What are the risks to the lender if a borrower declares bankruptcy? 3. What is a deficiency judgme ...

1 how can tax-exempt bonds offer lower-cost mortgage money

1. How can tax-exempt bonds offer lower-cost mortgage money and how is this money generally used? 2. Explain the two basic kinds of mortgage pools used to back securities and the two different methods used to generate th ...

1 households have a much larger fraction of their savings

1. Households have a much larger fraction of their savings in stocks than in bonds. Can you think of reasons why this is the case? 2. Why might you prefer to lend money to individuals and businesses in your city through ...

According to mary goldberg the chance to invest in new

According to Mary Goldberg, the chance to invest in New World Explorations was "too good to pass up," and she lost $10,000. Why do you think so many people are taken in by get-rich-quick schemes?

Define the endurance limit of a bolt which is greater the

Define the endurance limit of a bolt ? Which is greater, the static yield strength or the endurance limit of the bolt? When will an increase in preload increase fatigue life? When will an increase in preload decrease fat ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro