Question
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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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
12th edition
978-0324597714, 324597711, 324597703, 978-8131518571, 8131518574, 978-0324597707
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