Question
A firm is considering a new project with the following cash flows and initial investment. Calculate the Net Present Value (NPV) and the Internal Rate
A firm is considering a new project with the following cash flows and initial investment. Calculate the Net Present Value (NPV) and the Internal Rate of Return (IRR) using an expected return of 10%.
Year | Cash Flow |
0 | -$95,000 |
1 | $20,000 |
2 | $25,000 |
3 | $30,000 |
4 | $35,000 |
5 | $40,000 |
6 | $50,000 |
Period | 1% | 2% | 3% | 4% | 5% | 6% | 7% | 8% | 9% | 10% |
PV | ||||||||||
NPV | ||||||||||
IRR |
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Managerial Accounting
Authors: Karen W. Braun, Wendy M. Tietz
7th Edition
0137858515, 9780137858514
