Question
5. An investment has the following cash flows: July 12, 2008 $ -600 January 21, 2009 $ +200 March 7, 2010 $ +300 June 25,
5. An investment has the following cash flows: July 12, 2008 $ -600 January 21, 2009 $ +200 March 7, 2010 $ +300 June 25, 2011 $ +400 September 18, 2012 $ +800 March 29, 2015 $ +200 September 30, 2017 $ -2,000
a. Calculate the Net Present Value of this investment. Assume the annual discount rate is 15%.
b. Create a data table and graph illustrating the impact of the discount rate on the Net Present Value of this investment. Include a title and label the axes for the graph.
c. Use Solver to determine the Internal Rate of Return(s) associated with this investment.
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