What is the IRR for this project? ( Do not round intermediate calculations. Ente

Question

What is the IRR for this project? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

What is the NPV of this project if the required return is 4 percent? (Do not round intermediate calculations. Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places (e.g., 32.16).)

What is the NPV of the project if the required return is 0 percent? (Do not round intermediate calculations. Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places (e.g., 32.16).)

What is the NPV of the project if the required return is 23 percent? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g.,32.16).)

Explanation / Answer

Hi,

Please find the answer with revised figures as follows:

Part 2:

Part B:

NPV = 67500 - 43000/(1+.04)^1 - 32000/(1+.04)^2 = -3431.95

Part C:

NPV = 67500 - 43000/(1+0)^1 - 32000/(1+0)^2 = -7500

Part D

NPV = 67500 - 43000/(1+.23)^1 - 32000/(1+.23)^2 = 11389.22

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