WorksheetsChapter 7
Total questions: 9
Worksheet time: 9mins
Suppose you have the following cash flow stream. You invest $700, and then receive $100, $175, $250, and $325 at the end of years 1, 2, 3 and 4 respectively. What is the IRR for your investment?
3.62%
6.09%
7.35%
9%
An $8200 investment returned $2000 a year over a 5-years useful life. What was the rate of return on the investment?
6%
7%
9%
11%
The University of Sharjah is considering a plan to build an 8 megawatt cogeneration plant to provide for part of its power needs. The cost of the plant is expected to be $41 million. The university consumes 55,000 megawatt-hours per year at the cost of $120 per megawatt-hour. If the university will be able to produce power at one-half the cost that it now pays, what rate of return will it make on its investment if the power plant lasts 30 years?
7%
13%
18%
21%
The University of Sharjah is considering a plan to build an 8 megawatt cogeneration plant to provide for part of its power needs. The cost of the plant is expected to be $41 million. The university consumes 55,000 megawatt-hours per year at a cost of $120 per megawatt-hour. If the university can sell an average of 12,000 megawatt-hours per year back to the utility at $90 per megawatt-hour, what rate of return will it make?
8.96%
9.3%
10.1%
15%
Calculate the rate of return on the investment on the following cash flow. if MARR is 15%, should the investment option be accepted?
11.4% & Yes
13.5% & Yes
11.4% & No
13.5% & No
Calculate the rate of return on the investment on the following cash flow. If MARR is 10%, should the investment option be accepted?
13.23% & Yes
15.9% & Yes
13.23% & No
15.9% & No
Calculate the rate of return on the investment on the following cash flow. If MARR is 15%, should the investment option be accepted?
5.38% & Yes
7.82% & Yes
5.38% & No
7.82% & No
Calculate the rate of return on the investment on the following cash flow. If MARR is 15%, should the investment option be accepted?
27.3% & Yes
30.81% & Yes
27.3% & No
30.81% & No
The cash flows of a project are shown. Determine the rate of return per year. If MARR is 15%, should the investment option be accepted?
24.7% & Yes
29.4% & Yes
24.7% & No
29.4% & No
