NPV and IRR

A project that costs $$483,067\mathrm{.}67$ to install will provide annual cash

flows of $$82,000\mathrm{.}00$ for each of the next $12$ years.

a$.$ Calculate the NPV if the discount rate is $20\mathrm{.}00\%?($Do not round

intermediate calculations. Round your answer to $2$ decimal

places.$)$

NPV

b$.$ Is this project worth pursuing?

No

Yes

c$.$ How high can the discount rate be before you would reject the

project $($i$.$e$.$ What is the projects IRR$)?($Do not round intermediate

calculations. Round your answer to $2$ decimal places.$)$

Discount

rate

$\%$A project that costs $$483,067\mathrm{.}67$ to install will provide annual cash flows of $$82,000\mathrm{.}00$ for each of the next $12$ years.

a$.$

Calculate the NPV if the discount rate is $20\mathrm{.}00\%?($Do not round intermediate calculations. Round your answer to $2$ decimal places.$)$