Time remaini 12. A project has the following cash flows Year Cash Flow 65,500 -3

Question

Time remaini 12. A project has the following cash flows Year Cash Flow 65,500 -39,000 -33,600 ounded ,. 3216) What is the IRR for this project? (Do not round intermediate calculations and enter y internal rate of return ound intermediate calculations and round your answer to 2 decimal places, e.g,3 s the NFV of this project f the required refurn is 5 percent? (A negative answer should be indicated by a minus sign. Do not r Net present value s and round your answer to 2 decimal places, o.g, 3216) What is the NPV of the project if the Net present value $ What is the NPV of the Nel present value required return is 0 percent? (A negative answer should be indicated by a minus sign. Do not round in places, e.g, 32.16.) negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal e

Explanation / Answer

1.

IRR is shown as below using excel function=IRR(values)

2)

NPV at 5%=65500-39000/1.05^1-33600/1.05^2=-2119.05

3)

NPV at 0%=65500-39000/1.00^1-33600/1.00^2=-7100

4)

NPV at 5%=65500-39000/1.23^1-33600/1.23^2=11583.68

the above is the answer

Year Cash flow 0 65500 1 -39000 2 -33600 IRR 7.33%

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