Question
1.Using the following data, calculate the: a. payback period b. internal rate of return c. net present value. Project cost: $100000 Estimated life: 5 Years
1.Using the following data, calculate the: a. payback period b. internal rate of return c. net present value. Project cost: $100000 Estimated life: 5 Years Estimated residual value: $15,000 Annual net cash flow: $30,000 Required rate of return: 10%
I'm not sure the formula i apply is that right b,)internal rate of return answer
100,000= 30000/ (1+ r)+ 30000/(1+r)2+30000/(1+r)3+30000/(1+r)4+30000/(1+r)5
100,000=165000/(1+r)
(1+r)=1.65
R=0.2845
My answer is wrong. i just want to know how to calculate like step by step because I can't use Excel
Thanks
can you let me know my formula is that right?and the step of this calculation
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