Question
For the project below, please answer the following questions: (a) What are the NPVs for 11%, 13% and 15% respectively? (b) Based on your results
For the project below, please answer the following questions:
(a) What are the NPVs for 11%, 13% and 15% respectively?
(b) Based on your results above; what is the approximate IRR (and why)?
(c) Calculate the exact IRR with Excel (to 1 decimal place)
| Year (n) | 0 | 1 | 2 | 3 | 4 |
| Undiscounted cash flow | -$600,000 | $200,000 | $200,000 | $200,000 | $200,000 |
| DCF @ 11% |
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| DCF @11% |
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| DCF @ 13% |
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| DCF @13% |
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| DCF @ 15% |
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| DCF @15% |
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Managerial Accounting
Authors: James Jiambalvo
4th edition
9780470546888, 9780470333341, 470546883, 470333340, 978-0470578797
