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B C D E F H I BM G 0% 1 Name: Student Your score: 2 3 The Student Company is considering an investment with
B C D E F H I BM G 0% 1 Name: Student Your score: 2 3 The Student Company is considering an investment with an initial cost of $270,000 and annual cash inflows as follows. The company requires a return of 8%. 4 5 6 7 Year 0 1 2 3 8 9 Cash Inflows (Outflows) ($270,000) 48,600 35,000 54,000 41,000 81,000 54,000 27,000 67,500 8% 10 4 11 12 13 5 6 7 8 Discount rate 14 15 16 17 18 Using the NPV function, compute the net present value of this investment. 19 Using the IRR function, compute the internal rate of return for this investment. 20
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