Question

A project has an initial cost of $55,000, expected net cash inflows of $11,000 per year for 10 years, and a cost of capital of 9%. What is the project's IRR?

A project has an initial cost of $62,025, expected net cash inflows of $13,000 per year for 12 years, and a cost of capital of 10%. What is the project's MIRR?

A project has an initial cost of $51,225, expected net cash inflows of $11,000 per year for 8 years, and a cost of capital of 8%. What is the project's PI?

A project has an initial cost of $59,250, expected net cash inflows of $12,000 per year for 7 years, and a cost of capital of 12%. What is the project's payback period?

A project has an initial cost of $60,000, expected net cash inflows of $14,000 per year for 7 years, and a cost of capital of 13%. What is the project's discounted payback period?

Answer 1

Hi

As per policy we will solve only one question here.

1) Initial cost P0 = $55,000

net cash inflow C= $11,000

time t =10 years

IRR=?

IRR(internal rate of return) is the discount rate when the net cash flow of project is zero

We will use excel IRR formula to find out project's IRR

IRR = IRR(cash flows)

Below is the screenshot of IRR formula and value in excel

below is the value of IRR

Year	Cash flow
0	-55000
1	11000
2	11000
3	11000
4	11000
5	11000
6	11000
7	11000
8	11000
9	11000
10	11000
IRR	15.10%

hence IRR = 15.10%

  

Thanks