Question
Assumptions: NCF:$112,000 Expenses: $84,000 Growth Rate: 5% Inflation: 2% Discount Rate: 7.5% Model Term: 10 years (Hint Remember Infinity Year) Capitalization Rate: 8% Residual Rate:
Assumptions:
NCF:$112,000 Expenses: $84,000
Growth Rate: 5% Inflation: 2%
Discount Rate: 7.5% Model Term: 10 years (Hint Remember Infinity Year)
Capitalization Rate: 8% Residual Rate: 7.755
- What is the IRR?
- What is the NPV?
- Based upon the Discount Rate, would you recommend this acquisition?
Please show your work in Excel.
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Personal Finance
Authors: E. Thomas Garman, Raymond E. Forgue
13th edition
1337099759, 978-1337516440, 1337516449, 978-1337099752
