Define each of the following terms: d. Modified internal rate of return (MIRR) method

Q: Define actuarial rate of return

A: Definition: Actuarial rate of return is the expected value of losses of an insurance company that…

Q: Compute the percentage total return. C

A: The method of finding the intrinsic value of the stock of a company is called stock valuation.…

Q: Why is partitioning an internal rate of return important?

A: Introduction: There are two cash flow components which can form the portioning of internal rate of…

Q: What are the shortcomings of the internal rate of return criterion?

A: Solution- Internal Rate of Return (IRR)-      The Internal Rate of return (IRR) is that the discount…

Q: Which are the more complex applications of rate-of-return techniques/

A: The question is based on the concept of rate of return and its application in finance

Q: Simple Rate of Return

A: Simple rate of return = Net operating income * 100/ Cost of investment

Q: calculate the standard deviation of returns.

A: Standard Deviation is the square root of the variance, which is the measurement of risk. And risk…

Q: With the given information, find the Net Present Value (NPV).

A: The net worth of the project after the deduction of the current worth of the cash outflows from the…

Q: Required: i. Using present-value method, determine the best alternative ii. Using the internal rate…

A: By using present value method , debt alternative carrying interest of 10% is the best alternative…

Q: find The internal rate of return (IRR) for this case in exceland equation.

A: Internal rate of return(IRR) is the rate at which the the initial cost of project is equal to…

Q: Which of the following should not be included as an application of the rate of return concept? rate…

A: As per the guidelines, only one question is allowed to be answered so, I am answering question no.…

Q: What is limitation of Payback period, Net Present Value (NPV) and Internal rate of return (IRR).…

A: i) Payback period: Payback period is the expected time period which is required to recover the cost…

Q: Define average return

A: The formula to compute average return as follows:

Q: PROVIDE - PRESENT VALUE, FUTURE VALUE, AND internal rate of return (IRR)

A: Present and Future Value: The current value of a cash flow that is expected to occur at some time in…

Q: Internal rate of return

A: Internal rate of return- It is the rate of discount at which the sum of discounted cash inflows…

Q: What is meant by partitioning the internal rate of return? Why is this procedure meaningful?

A: Internal rate of return is defined as the annual rate of earnings on an investment and unlike income…

Q: Define each of the following terms: c. Net present value (NPV) method; internal rate of return (IRR)…

A: Net present value (NPV) is the contrast between the present value of money inflows over some…

Q: e Internal rate of return

A: The following problem can be solved using XIRR function in excel.

Q: Draw a figure to explain Elements of required return - establishing a MARR?

A: The figure is represented as below: Note: Values assumed

Q: Explain four aspects of rate-of-return analysis?

A: The return of return is the return on investment made when the time value cashflows turns to net…

Q: What formula to use to find Payback Period and NPV? (in Excel)

A: NPV or Net Present Value is the present value of all net cash cashflow on a provided discount rate.…

Q: calculate the internal rate of return

A: Information Provided: Discount rate = 10% Realisable Value = 20%

Q: Explain expected rate of return

A: Return: Return is defined as the money attained or lost on an investment through certain time…

Q: Describe the Incremental B/C-Ratio Analysis?

A: Benefit cost analysis: Benefit cost analysis refers to analyzing the desirability of project where…

Q: Define each of the following terms:f. Residual value

A: Introduction: Residual value is one of the elements of leasing computation or process. It defines…

Q: Define “Market Value Added (MVA)” and “Economic Value Added(EVA).”

A: Introduction: Economic value added (EVA) and Market value added (MVA) are computations utilized to…

Q: Explain normal rate of return.

A: Rate of return: Rate of return is the return on investment. it might be a loss or profit on an…

Q: Calculate the average rate of return, and conclude your results with your comments about the ARR for…

A: Calculation of Accounting Rate of Return (ARR)  Year                             Net Cash Flow 1st…

Q: Explain realized rate of return

A: The return generated by an investment is any asset class is the normalized rate of return. When the…

Q: Elements of required return - establish a MARR? Explain how/

A: Introduction: A capital investment to be appealing should have a return which goes beyond the…

Q: Define each of the following terms: e. NPV profile; crossover rate

A: NPV PROFILE: NPV(Net present value) profile is described as the values of net present value and the…

Q: Write an alternative way to derive the geometric-gradient-series present-worth?

A: Geometric-gradient-series present worth is derived with the help of the following formula: g is…

Q: Outline the rules for identifying the optimal transfer price.

A: Transfer pricing:- Transfer pricing is considered as the value that is attached to those goods and…

Q: What is Modified Internal Rate of Return (MIRR) method?

A: Internal rate of return (IRR): The internal rate of return (IRR) is a measure utilized in capital…

Q: Summarizes the process of performing incremental inves1ment analysis?

A: The incremental analysis is likewise a quantitative dynamic technique called cost approach, marginal…

Q: Explain the process of Rate-of-Return Calculation with Excel?

A: Rate of return is the rate expressed in terms of percentage which an investor expects from the…

Q: Define compressed adjusted present value approach (CAPV)

A: Introduction: This question is related to concept of capital budgeting. Capital budgeting is an…

Q: please state and explain the computational steps of a Net Present Value (NPV) calculation

A: NPV is used in corporate finance in taking decision on whether to accept or reject any project or…

Q: Find the internal rate of return

A: Internal Rate of Return is the rate at which Present value of cash inflow is equal to present value…

Q: One of the advantages of Internal Rate of Return is:

A: The correct answer is b. It gives the closet rate of return.

Q: What are the four aspects of rate-of-return analysis?

A: Rate of return analysis tells the rate of return which a investment can give. It carefully analyse…

Q: Another term for return is ..................

A: Return means money which is earned or lost in the process of investment. Return  can be in the form…