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Company A has the following cash flows year 0 (100,000) year 1 50,000 year 2

Company A has the following cash flows

year 0           (100,000) 

year 1            50,000

 year 2          100,000 

year 3           300,000 

Cost of Capital = 15% 


1)Solve for NPV company A using the excel function (you must show your work) 

 Using NPV would you proceed with the project and why? 

2) Solve for IRR for Company A using the excel function (you must show your work) 

Using IRR would you proceed with the project and why? 

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