a | |||
Project | |||
IRR is the rate at which NPV =0 | |||
IRR | 0.072666224 | ||
Year | 0 | 1 | 2 |
Cash flow stream | 112000 | -67000 | -57000 |
Discounting factor | 1 | 1.072666 | 1.150613 |
Discounted cash flows project | 112000 | -62461.2 | -49538.8 |
NPV = Sum of discounted cash flows | |||
NPV Project = | -0.00021399 | ||
Where | |||
Discounting factor = | (1 + IRR)^(Corresponding period in years) | ||
Discounted Cashflow= | Cash flow stream/discounting factor | ||
IRR= | 7.27% | ||
b | |||
Project | |||
Discount rate | 0.1 | ||
Year | 0 | 1 | 2 |
Cash flow stream | 112000 | -67000 | -57000 |
Discounting factor | 100.00% | 1.1 | 1.21 |
Discounted cash flows project | 112000 | -60909.1 | -47107.4 |
NPV = Sum of discounted cash flows | |||
NPV Project = | 3983.47 | ||
Where | |||
Discounting factor = | (1 + discount rate)^(Corresponding period in years) | ||
Discounted Cashflow= | Cash flow stream/discounting factor | ||
c | |||
Project | |||
Discount rate | 0 | ||
Year | 0 | 1 | 2 |
Cash flow stream | 112000 | -67000 | -57000 |
Discounting factor | 1 | 1 | 1 |
Discounted cash flows project | 112000 | -67000 | -57000 |
NPV = Sum of discounted cash flows | |||
NPV Project = | -12000 | ||
Where | |||
Discounting factor = | (1 + discount rate)^(Corresponding period in years) | ||
Discounted Cashflow= | Cash flow stream/discounting factor | ||
d | |||
Project | |||
Discount rate | 0.24 | ||
Year | 0 | 1 | 2 |
Cash flow stream | 112000 | -67000 | -57000 |
Discounting factor | 1 | 1.24 | 1.5376 |
Discounted cash flows project | 112000 | -54032.3 | -37070.8 |
NPV = Sum of discounted cash flows | |||
NPV Project = | 20896.98 | ||
Where | |||
Discounting factor = | (1 + discount rate)^(Corresponding period in years) | ||
Discounted Cashflow= | Cash flow stream/discounting factor | ||
A project has the following cash flows: Year Cash Flow $112,000 – 67,000 - 57,000 1...
A project has the following cash flows: Year Cash Flow $112,000 - 67,000 - 57,000 N- a. What is the IRR for this project? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the NPV of this project if the required return is 10 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the NPV of the...
Saved CHAPTER 8 GRADED HOMEWORK A A project has the following cash flows: Cash Flow $112,000 - 67,000 - 57,000 points 8 00:24:33 eBook a. What is the IRR for this project? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g. 32.16.) b. What is the NPV of this project if the required return is 10 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g.,...
A project has the following cash flows: Year Cash Flow 0 $ 66,500 1 –41,000 2 –32,800 What is the IRR for this project? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Internal rate of return % What is the NPV of this project if the required return is 4 percent? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your...
A project has the following cash flows: Year Cash Flow 0 $ 69,500 1 – 47,000 2 – 30,400 a. What is the IRR for this project? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the NPV of this project if the required return is 6 percent? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer...
A project has the following cash flows: Year Cash Flow $ 68,000 -44,000 - 31,600 a. What is the IRR for this project? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the NPV of this project if the required return is 4 percent? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places,...
A project has the following cash flows: Year Cash Flow $74,000 -56.000 -26,800 2 . a. What is the IRR for this project? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the NPV of this project if the required return is 6 percent? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places,...
A project has the following cash flows: Year Cash Flow $ 71,000 -50,000 -29,200 a. What is the IRR for this project? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the NPV of this project if the required return is 6 percent? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g.,...
A project has the following cash flows: Year Cash Flow $73,000 -54,000 - 27,600 a. What is the IRR for this project? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the NPV of this project if the required return is 5 percent? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g.,...
A project has the following cash flows: Year Cash Flow 65,500 165,500 0 1 39,000 -33,600 a. What is the IRR for this project? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.a.. 32.16.) b. What is the NPV of this project if the required return is 5 percent? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal...
A project has the following cash flows: Year Cash Flow $73,500 -55,000 - 27,200 a. What is the IRR for this project? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the NPV of this project if the required return is 4 percent? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g.,...