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Net Present Value (NPV) Analysis and Internal Rate of Return (IRR) Calculation: Analyze the net present value (NPV) and calculate the internal rate of return

  1. Net Present Value (NPV) Analysis and Internal Rate of Return (IRR) Calculation:

Analyze the net present value (NPV) and calculate the internal rate of return (IRR) for STU Company with the following cash flow details:

    • Initial Investment: -$800,000
    • Year 1 Cash Flow: $200,000
    • Year 2 Cash Flow: $300,000
    • Year 3 Cash Flow: $400,000

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