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A project has the following projected Cash Flows: Year 0 1 2 3 4 5 Cash Flow -$20000 $8000 $7000 $6000 $2000 $1500 Calculate
A project has the following projected Cash Flows:
| Year | 0 | 1 | 2 | 3 | 4 | 5 |
| Cash Flow | -$20000 | $8000 | $7000 | $6000 | $2000 | $1500 |
Calculate the NPV's for this Cash Flow for each of the following % rates:
- 5%
- 9%
- 10%
- Based on the NPV figures calculated above what would the IRR be rough? Rough extrapolation and a description of why you have chosen this % rate is required here.
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NPV CF0 CF1 1r1 CF2 1r2 CFn 1rn Where CF0 cash flow at time 0 initial investment CF1 to CFn cash flo...
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Business Statistics
Authors: Robert A. Donnelly
2nd Edition
0321925122, 978-0321925121
