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OPTION E: NPV = 15% and IRR = 31% QUESTION 7 Supposing, after graduation you got a job in a Capital Planning office of a

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OPTION E: NPV = 15% and IRR = 31%

QUESTION 7 Supposing, after graduation you got a job in a Capital Planning office of a Corporation. Suddenly, Capital Planning Officer became sick and the CEO of the Corporation wants to know the NPV at Discount Rate of 10% and IRR for the following project ASAP: 1 Project X231 Yr CF 0 $ (20.00) $ 5.00 2$ 8.00 3 $ 12.00 m 4 $ (5.00) 5 $ 18.00 Total= $ 18.00 M= millions Best on your Calculations, your approximate answers are: E E E E E E E a. NPV = 18m and IRR = 10% b. NPV = $48m and IRR = 23% OC. NPV = $-8 m and IRR = --7.5% d. NPV = $8.00 m and IRR = 23%

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