Question

Please answer the missing information in the table and IRR.

The following spreadsheet has been developed to solve for the incremental internal rate of return for the comparison of the new challenger to the defender. Complete the missing information in the table. End of Year (EOY) Net Cash Flow (NCF) for challenger Net Cash Flow (NCF) for defender Incremental Cash Flow (INCR, CF) $ 0 $-520,000 $0,000 $ 1-9 $140,000 $0,000 $ 10 $300,000 $0,000 Round your answer to the nearest dollar. The tolerance is +/- 10. If entering a negative number use the (-) sign. What is the IRR for the incremental cash flow? IRR = % Do all calculations to 5 decimal places and round final answer to 2 decimal places. The tolerance is +/- 0.02. If entering a negative number use the (-) sign.

Answer 1

page-1 Q Ansi-) Step. 1 Incremental Cash flow = (Net cash flow for Challenges - Net Cash flow for defender) Step 2 Year Challenger Defender Incremental $-520,000 $0.00 =>$-5 ci Doo -520,000 Cz 1-9 140,00 $0,000 = $140,000 C3 $0,000 $3009,000 $3000,000 = ) lo

page2 Now, Internal rate of retum method is one of the capital investment which determine the rate of return wheral the net present Value of all the cash flow from an investment is zero- IRR = IRR Carica (3) 251e こ