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

Question

  

  

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

  

  

What is the NPV of this project, if the required return is 11 percent? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and 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. A negative amount should be indicated by a minus sign.)

  

   

What is the NPV of the project if the required return is 22 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

  

A project has the following cash flows:

Explanation / Answer

IRR = 10% + (48991 - 44000 / 48991 - 48331)% = 17.56%

NPV of this project, if the required return is 11 percent = $48331 - $44000 = $4331

The NPV of the project if the required return is 0 percent = (23000 + 34000) - 44000 = $13000

NPV of the project if the required return is 22 percent = (23000 * 0.8197 + 34000 * 0.6719) - 44000 = -$2302

10% PV 11% PV 0 -44000 1 23000 0.909 20907 0.901 20723 2 34000 0.826 28084 0.812 27608 48991 48331

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