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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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