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Consider the following cash flows for an investment project by Pfizer Inc. for the year 2023: Year Cash Flow ($) 0 (1,000,000) 1 300,000 2
Consider the following cash flows for an investment project by Pfizer Inc. for the year 2023:
Year | Cash Flow ($) |
0 | (1,000,000) |
1 | 300,000 |
2 | 400,000 |
3 | 500,000 |
4 | 200,000 |
Requirements:
- Calculate the Net Present Value (NPV) if the discount rate is 10%.
- Determine the Internal Rate of Return (IRR).
- Compute the Payback Period.
- Analyze the profitability of the project.
- Evaluate the impact of a 2% increase in the discount rate on NPV.
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