Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A project has the following cash flows: Year Cash Flow 0 $64,700 1 -30,700 2 -48,600 Required: (a) What is the IRR for this project?

A project has the following cash flows:

Year Cash Flow
0 $64,700
1 -30,700
2 -48,600

Required:
(a) What is the IRR for this project? (Do not include the percent sign (%). Round your answer to 2 decimal places. (e.g., 32.16))
IRR percent
(b) If the required return is 8 percent, should the firm accept the project? NO

(c) What is the NPV of the project if the required return is 0 and 17 percent? (Do not include the dollar signs ($). Negative amount should be indicated by a minus sign. Round your answers to 2 decimal places. (e.g., 32.16))
NPV at 0 percent $
NPV at 17 percent $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

QlikView For Finance

Authors: B. Diane Blackwood

1st Edition

1784395749, 978-1784395742

More Books

Students also viewed these Finance questions