Initial cash outflow = ($200,000) in the current year (year 0), and ($50,000) in the next year.

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Initial cash outflow = $$200,000$ in the current year (year 0), and $$50,000$ in the next year.

Cash inflows = $$75,000$ in year 1, $$100,000$ in year 2, $$150,000$ in year 3, and $$25,000$ in year 4 Required rate of return = 15%

Inflation rate = 4%

a. Calculate the NPV for this project.

b. Calculate the IRR for this project.

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Cost And Value Management In Projects

ISBN: 9781119933540

2nd Edition

Authors: Ray R. Venkataraman, Jeffrey K. Pinto

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Question Posted: May 04, 2024 11:02 PM

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Initial cash outflow = ($200,000) in the current year (year 0), and ($50,000) in the next year.

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To calculate the Net Present Value NPV for the project we need to discount the cash inflows and outf...View the full answer

Cost And Value Management In Projects

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