I need answers for 1,2,3,4. Please show how did you do them :) ...

70.2K

Verified Solution

Question

Accounting

I need answers for 1,2,3,4. Please show how did you do them :) image
Cleveland Cliffs is interested in purchasing an ore ship for its great lakes operations. The new ship will be christened "Rockstar", pronounced "Rock-Sta' ". Total cost including delivery is $30,000,000. Relevant cash flows (net cash flows) from this project are estimated at $10,000,000 and the ship has arn estimated useful life of five years, after which it can be sold for $25,000,000. The required rate of return on this project is 18.25% 1 The project's payback period is a. 1 year b. 2 years c.) 3 years 4 years none of the above e. 2 What is the Rock Sta' projects NPV 2,120,329.00 5,420,527.23 10,875,963.00 11,908,149.00 a. b. C. d. 3 What is the projects IRR. a. b. C. d. 43.58% 31,54% 25.24% 14.00% Karyn purchases a 6 month treasury bill with a face value of $10,000 for $9,872.00. Calculate the bonds yield. a, 3.41% b. 3.32% c. 3.26% d 3.02% e 2.61%

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students