Question
A startup Internet company has generated the following cash balance for the first six years of its IS projects: -$250,000, -$180,000, $225,000, $340,000, $410,000, and
A startup Internet company has generated the following cash balance for the first six years of its IS projects: -$250,000, -$180,000, $225,000, $340,000, $410,000, and $425,000. Using the NPV function in Excel, calculate the net present value of this project at an 8.5 percent interest rate. What is the IRR of this project? If a bank is willing to give the company a loan at 15 percent to implement these projects, should the company accept the loan (assuming there are no other conditions)? Why or why not?
POST SCREEN SHOTS SO I CAN SEE HOW YOU DID IT IN EXCEL.
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International Financial Reporting A Practical Guide
Authors: Alan Melville
6th edition
1292200743, 1292200766, 9781292200767, 978-1292200743
