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I cant figure out how to Calculate NPV and IRR in Excel Initial investment outlay of $40 million, consisting of $35 million for equipment and

I cant figure out how to Calculate NPV and IRR in Excel

  • Initial investment outlay of $40 million, consisting of $35 million for equipment and $5 million for net working capital (NWC) (plastic substrate and ink inventory); NWC recoverable in terminal year
  • Project and equipment life: 5 years
  • Sales: $27 million per year for five years
  • Assume gross margin of 50% (exclusive of depreciation)
  • Depreciation: Straight-line for tax purposes
  • Selling, general, and administrative expenses: 10% of sales
  • Tax rate: 35%

Assume a WACC of 10%.

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