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A company plans to invest in a project with the following financials: Initial investment: $15,000 Yearly cash inflows: $5,000 for 4 years Discount rate: 11%
A company plans to invest in a project with the following financials:
- Initial investment: $15,000
- Yearly cash inflows: $5,000 for 4 years
- Discount rate: 11%
Requirements:
- Calculate the NPV.
- Determine the IRR.
- Perform a sensitivity analysis with discount rates of 9% and 13%.
- Discuss the impact of changing cash inflows by ±10%.
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Corporate Financial Management
Authors: Glen Arnold
5th edition
978-1292178066, 129217806X, 273758837, 978-0273758839
