DeBarry Corporation makes an investment of $50,000 which yields the following cash flows: Year ............Cash flow 1
Question:
DeBarry Corporation makes an investment of $50,000 which yields the following cash flows:
Year ............Cash flow
1 ..................$10,000
2 ....................10,000
3 ....................16,000
4 ....................18,000
5 ....................20,000
a. What is the present value with a 9 percent discount rate (cost of capital)?
b. What is the IRR?
c. In this problem would you make the same decision in parts a and b?
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
a NPV Year Cash flow Present value 9 1 10000 9174 2 10000 8417 3 16000 12355 4 18000 12752 5 20000 1...View the full answer
Answered By
Muhammad Ahtsham Shabbir
I am a professional freelance writer with more than 7 years’ experience in academic writing. I have a Bachelor`s Degree in Commerce and Master's Degree in Computer Science. I can provide my services in various subjects.
I have professional excellent skills in Microsoft ® Office packages such as Microsoft ® Word, Microsoft ® Excel, and Microsoft ® PowerPoint. Moreover, I have excellent research skills and outstanding analytical and critical thinking skills; a combination that I apply in every paper I handle.
I am conversant with the various citation styles, among them; APA, MLA, Chicago, Havard, and AMA. I also strive to deliver the best to my clients and in a timely manner.My work is always 100% original. I honestly understand the concern of plagiarism and its consequences. As such, I ensure that I check the assignment for any plagiarism before submission.
392+ Reviews
587+ Question Solved
Related Book For 
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
Question Posted:
