Question
Given the following cash flows for a capital project, calculate the NPV and IRR. The required rate of return is 8 percent. Year 0 1
Given the following cash flows for a capital project, calculate the NPV and IRR. The required rate of return is 8 percent.
| Year | ||||||
|---|---|---|---|---|---|---|
| 0 | 1 | 2 | 3 | 4 | 5 | |
| Cash Flows | $-54016 | $18650 | $12350 | $23200 | $10300 | $4250 |
A) NPV=2721. IRR=14.1%
B) NPV=2721. IRR=10.2%
C) NPV=1576. IRR=14.1%
D) NPV=1576. IRR=10.2%
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Public Finance
Authors: Harvey S. Rosen
3rd Edition
0256083762, 978-0256083767
