Question
ABC Corporation is considering investing $100,000 in a project that has 100 periods of cash flows (for detailed cash flows, please refer to the Excel
ABC Corporation is considering investing $100,000 in a project that has 100 periods of cash flows (for detailed cash flows, please refer to the Excel file). The discount rate for the project is 8%. Please calculate: 1. Is the NPV of the project larger than 0? Should ABC Corporation take on this project? (Use Excels NPV function to get the NPV of those cash flows and screenshot the function you used.) 2. What rate of return would your investment earn if you did pay $100,000 to receive the cash flows shown in the Excel? (Use Excels IRR function to get the value of the cash flows and screenshot the function you used.) Note: Must submit the screenshot of the function you used
Rate | 8% |
year | cash flow |
0 | -100000 |
1 | 1000 |
2 | 2000 |
3 | 3000 |
4 | 4000 |
5 | 5000 |
6 | 6000 |
7 | 7000 |
8 | 8000 |
9 | 9000 |
10 | 10000 |
11 | 11000 |
12 | 2000 |
13 | 13000 |
14 | 14000 |
15 | 5000 |
16 | 16000 |
17 | 17000 |
18 | 8000 |
19 | 19000 |
20 | 20000 |
21 | 21000 |
22 | 7000 |
23 | 23000 |
24 | 24000 |
25 | 5000 |
26 | 26000 |
27 | 27000 |
28 | 28000 |
29 | 29000 |
30 | 30000 |
31 | 31000 |
32 | 32000 |
33 | 33000 |
34 | 34000 |
35 | 35000 |
36 | 36000 |
37 | 37000 |
38 | 38000 |
39 | 39000 |
40 | 40000 |
41 | 41000 |
42 | 42000 |
43 | 43000 |
44 | 44000 |
45 | 45000 |
46 | 46000 |
47 | 47000 |
48 | 48000 |
49 | 49000 |
50 | 50000 |
51 | 51000 |
52 | 52000 |
53 | 53000 |
54 | 54000 |
55 | 55000 |
56 | 56000 |
57 | 57000 |
58 | 58000 |
59 | 59000 |
60 | 60000 |
61 | 61000 |
62 | 62000 |
63 | 63000 |
64 | 64000 |
65 | 65000 |
66 | 66000 |
67 | 67000 |
68 | 68000 |
69 | 69000 |
70 | 70000 |
71 | 71000 |
72 | 72000 |
73 | 73000 |
74 | 74000 |
75 | 75000 |
76 | 76000 |
77 | 77000 |
78 | 78000 |
79 | 79000 |
80 | 80000 |
81 | 81000 |
82 | 82000 |
83 | 83000 |
84 | 84000 |
85 | 85000 |
86 | 86000 |
87 | 87000 |
88 | 88000 |
89 | 89000 |
90 | 90000 |
91 | 91000 |
92 | 92000 |
93 | 93000 |
94 | 94000 |
95 | 35000 |
96 | 16000 |
97 | 7000 |
98 | 8000 |
99 | 9000 |
100 | 6000 |
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