Question
A project requires an initial investment of $160,000 and is expected to generate the following cash flows. Calculate the NPV and IRR using a discount
A project requires an initial investment of $160,000 and is expected to generate the following cash flows. Calculate the NPV and IRR using a discount rate of 14%.
Year | Cash Flow |
0 | -$160,000 |
1 | $35,000 |
2 | $40,000 |
3 | $45,000 |
4 | $50,000 |
5 | $55,000 |
6 | $60,000 |
Period | 1% | 2% | 3% | 4% | 5% | 6% | 7% | 8% | 9% | 10% | 11% | 12% | 13% | 14% |
PV | ||||||||||||||
NPV | ||||||||||||||
IRR |
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Fundamentals of Corporate Finance
Authors: Richard Brealey, Stewart Myers, Alan Marcus, Devashis Mitra, Elizabeth Maynes, William Lim
6th Canadian edition
1259024962, 978-1259024962
