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Easy One, but ill be appreciated if you can do it on Financial calculator OR Excel function Anderson International Limited is evaluating a project in
Easy One, but ill be appreciated if you can do it on Financial calculator OR Excel function
Anderson International Limited is evaluating a project in Erewhon. The project will create the following cash flows: Year Cash Flow $1.210,000 0 1 385,000 450,000 345,000 300,000 2 3 4 All cash flows will occur in Erewhon and are expressed in dollars. In an attempt to improve its economy, the Erewhonian government has declared that all cash flows created by a foreign company are "blocked and must be reinvested with the government for one year. The reinvestment rate for these funds is 5 percent. If Anderson uses a required return of 10 percent on this project, what are the NPV and IRR of the project? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g. 32.16. Enter your IRR as a percent.) NPV IRRStep by Step Solution
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