Question
Anderson International Limited is evaluating a project in Erewhon. The project will create the following cash flows: Year Cash Flow 0 $ 1,275,000 1 435,000
Anderson International Limited is evaluating a project in Erewhon. The project will create the following cash flows: |
Year | Cash Flow | |||
0 | $ | 1,275,000 | ||
1 | 435,000 | |||
2 | 505,000 | |||
3 | 415,000 | |||
4 | 345,000 | |||
All cash flows will occur in Erewhon and are expressed in dollars. In an attempt to improve its economy, the Erewhonian government has declared that all cash flows created by a foreign company are blocked and must be reinvested with the government for one year. The reinvestment rate for these funds is 4 percent. |
If Anderson uses a required return of 11 percent on this project, what are the NPV and IRR of the project? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Enter your IRR as a percent.) |
I have the correct answers for these because I got them here.. but can someone post how to get the answer in excel? NPV should be -26,561.67 and the IRR is 10.29%
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