Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Initial outlay at the beginning of year 1 = 5 0 0 , 0 0 0 . Desired rate of return = 1 8 %

Initial outlay at the beginning of year 1=500,000. Desired rate of return=18%Cash Flows into the Company:Year 1=100,000Year 2=500,000 and outflow (expenditure) of 200,000Year 3=200,000Year 4=300,000
How do I find the NPV, IRR, and the Payback?
11:09
Projects Considered
\table[[,A,B,C,D],[1,Period (Years),Cash Flow,Outflow,],[2,0,($500,000),,],[3,1,100,000,,],[4,2,500,000,$200,000.00,],[5,3,200,000,,],[6,4,300,000,,],[7,,,,],[8,,,,],[9,,,,],[10,,,,],[11,,,,],[12,Interest Rate,18%,,],[13,Net Present Value:NPV(),$557,771.71,,],[14,Internal Rate of Return (IRR),37%,,],[15,Payback,2.5,,],[16,,,,],[17,,,,],[18,,,,],[19,,,,],[20,,,,],[21,,,,],[22,,,,],[23,,,,],[24,,,,],[25,,,,],[26,,,,],[27,,,,],[28,,,,],[29,,,,],[30,,,,],[31,,,,],[32,,,,],[33,,,,],[34,,,,],[35,,,,],[36,,,,],[37,,,,],[38,,,,],[39,,,,],[40,,,,],[11,,,,],[fx,Enter text or form,ula here,,]]
Why am I getting this result? Am I doing this correctly?
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction To The Financial Management Of Healthcare Organizations

Authors: Michael Nowicki

7th Edition

156793904X, 9781567939040

More Books

Students also viewed these Finance questions