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NPV profile of a project. Given the following cash flow of Project L-2, draw the NPV profile. Hint: Be sure to use a discount rate

NPV profile of a

project.

Given the following cash flow of Project L-2, draw the NPV profile.

Hint:

Be sure to use a discount rate of zero for one intercept

(y-axis)

and solve for the IRR for the other intercept

(x-axis).

(Click on the following icon

in order to copy its contents into a spreadsheet.)

Year

0=$250,000

Year

1=$49,000

Year

2=$80,000

Year

3=$116,000

Year

4=$133,000

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