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 21 percent? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g.,32.16).)

Explanation / Answer

Reqmt1 Statemnet showing Cash flows Particulars Time PVf@8% Amount PV Cash Outflows                            -                1.00 (66,500.00)      (66,500.00) PV of Cash outflows      (66,500.00) Cash inflows                     1.00          0.9259     41,000.00         37,962.96 Cash inflows                     2.00          0.8573     32,800.00         28,120.71 PV of Cash Inflows         66,083.68 NPV            (416.32) Statemnet showing Cash flows Particulars Time PVf@7% Amount PV Cash Outflows                            -                1.00 (66,500.00)      (66,500.00) PV of Cash outflows      (66,500.00) Cash inflows                     1.00          0.9346     41,000.00         38,317.76 Cash inflows                     2.00          0.8734     32,800.00         28,648.79 PV of Cash Inflows         66,966.55 NPV               466.55 NPV@7%                466.55 NPV@8%              (416.32) Diff@1%                882.87 IRR = 7% + 466.55/882.87*1% IRR = 7.53% Reqmt2 Statemnet showing Cash flows Particulars Time PVf@4% Amount PV Cash Outflows                            -                1.00 (66,500.00)      (66,500.00) PV of Cash outflows      (66,500.00) Cash inflows                     1.00          0.9615     41,000.00         39,423.08 Cash inflows                     2.00          0.9246     32,800.00         30,325.44 PV of Cash Inflows         69,748.52 NPV           3,248.52 Reqmt3 Statemnet showing Cash flows Particulars Time PVf@0% Amount PV Cash Outflows                            -                1.00 (66,500.00)      (66,500.00) PV of Cash outflows      (66,500.00) Cash inflows                     1.00          1.0000     41,000.00         41,000.00 Cash inflows                     2.00          1.0000     32,800.00         32,800.00 PV of Cash Inflows         73,800.00 NPV           7,300.00 Reqmt4 Statemnet showing Cash flows Particulars Time PVf@21% Amount PV Cash Outflows                            -                1.00 (66,500.00)      (66,500.00) PV of Cash outflows      (66,500.00) Cash inflows                     1.00          0.8264     41,000.00         33,884.30 Cash inflows                     2.00          0.6830     32,800.00         22,402.84 PV of Cash Inflows         56,287.14 NPV      (10,212.86)

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