Question
LOL Company wants to calculate the NPV and IRR on the following project: Cost is $25,000 today, with end-of-year cash flows of $12,000, $10,000, and
LOL Company wants to calculate the NPV and IRR on the following project:
Cost is $25,000 today, with end-of-year cash flows of $12,000, $10,000, and $7,500 respectively for three years. Assume the cost of capital is 8%
a) NPV?
b) IRR?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Answer To calculate the NPV Net Present Value of the project we need to discount each cash flow back ...
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Step: 2
Step: 3
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Valuation The Art and Science of Corporate Investment Decisions
Authors: Sheridan Titman, John D. Martin
3rd edition
133479528, 978-0133479522
