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ABC Corporation is considering an investment of €375 million with expected after-tax cash inflows of €115...

ABC Corporation is considering an investment of €375 million with expected after-tax cash inflows of €115 million per year for seven years and an additional after-tax salvage value of €50 million in Year 7. The required rate of return is 10 percent.

What is the investment’s

NPV?

IRR?

MIRR?

PI?

Payback Period?

Also upload your excel files showing your work.

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Answer #1

1 time cash flows cumulative cash flow future value of cash flows 0 1 375 115 115 115 115 115 115 165 375 260 145 203.729515 185.20865 168.3715 153.065 139.15 126.5 165 1141.024665 4 4 315 10 11 reqd return 12 NPV 13 IRR 14 MIRR 0.1 210.53 24.90% 17.23% MİRRI without 15 excel formula) 16 PI 17 payback period 18 17.23% 1.56 3.26

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