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NPV and IRR Consider a project with the following cash flows: The appropriate discount rate of the project is 9 % . ( a )
NPV and IRR
Consider a project with the following cash flows:
The appropriate discount rate of the project is
a What is the Net Present Value of the project? Based on the NPV decision rule, should we invest in this
project?
b Next, we want to see the dependence of NPV on the discount rate. Plot the NPV for discount rates
in a range of to with an increment of How many estimates of IRR do we expect for this
project?
c Find the IRR using the Excel function "IRR As the initial guess, please try and Based on
the IRR decision rule, can we determine whether to invest or not?
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