Question
1. Calculate the NPV of a project that has an initial investment of $700,000.00 at an IRR of 15% with inflows of $200,000.00 each year
1. Calculate the NPV of a project that has an initial investment of $700,000.00 at an IRR of 15% with inflows of $200,000.00 each year for the next five years. Will this project be acceptable or rejected and why?
2. A company wants to find what the Net Present Value of a project is: if the initial investment is $500,000.00 at an internal rate of return of 20% with potential inflows of $250,000.00; $200,000.00; $350,000.00; $200,000.00; $275,000.00 during the next five years with additional outflows or investments in years 2, 3, and 4 of $50,000.00 for each of those years. Will this project be acceptable or rejected and why?
How to calculate in Excel
Please help!!
Thank you
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