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#3 A project that provides annual cash flows of $16,900.00 for eight years costs $75,000.00 today. What is the NPV for the project is the

#3
A project that provides annual cash flows of $16,900.00 for eight years costs $75,000.00 today.
What is the NPV for the project is the required rate of return is 7.00%
Periods
PMT
Required Return
PVIF
PVIFA
PV
Cost
NPV
NPV = $ 24,419.94
NPV = $ 27,619.54
NPV= $27,619.54
NPV = $ 26,914.94
NPV = $ 25,914.94
#4
What is the IRR of the following set of cash flows?
Year 0 1 2 3
Cash Flows -$16,600.00 $7,300.00 $8,600.00 $7,100.00
PVIF
NPV
IRR
IRR = 16.32%
IRR = 15.32%
IRR = 18.32%
I
i
IRR= 19.32%
#5
A project has the following cash flows:
Year 0 1 2 3
Cash Flows -$16,900.00 $10,500.00 $10,500.00 $10,500.00
WACC 28.00% 28.00% 28.00% 28.00%
What is the MIRR?
Year 0 1 2 3
Cash Flows -$16,900.00 $10,500.00 $10,500.00 $10,500.00
WACC 28.00% 28.00% 28.00% 28.00%
FVIF
FVIFA
FV
PVIF
PV
Cost
NPV
MIRR
MIRR = 35.35%
MIRR = 34.53%
MIRR = 33.54%
MIRR = 43.35%

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