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Calculate the NPV and IRR for the cash flows given below, using a required return of 11%. Discuss whether the IRR is reliable in this
Calculate the NPV and IRR for the cash flows given below, using a required return of 11%. Discuss whether the IRR is reliable in this situation.
Year | Cash flow |
0 | $ (650,000) |
1 | $ 125,000 |
2 | $ 150,000 |
3 | $ 125,000 |
4 | $ 100,000 |
5 | $ 80,000 |
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