Question
A company has the following cash flows. Year 0 -$588,000 Year 1 218,000 Year 2 161,000 Year 3 226,000 Year 4 205,000 All the cash
Year 0 -$588,000
Year 1 218,000
Year 2 161,000
Year 3 226,000
Year 4 205,000
All the cash flows have to be reinvested a year after they are actually listed at a reinvestment rate of 5%.
The required rate of return is 12%
Find the Net Present Value and the IRR.
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Construction accounting and financial management
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135017114, 978-0135017111
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