Question
Please show all work 1) Berry Company is considering a project that has the following cash flow and WACC data. What is the project's NPV?
Please show all work
1) Berry Company is considering a project that has the following cash flow and WACC
data. What is the project's NPV? Note that a project's expected NPV can be negative, in which
case it will be rejected.
WACC: 9 %
Year 0 1 2 3 4 5
Cash flows -$1,000 $400 $390 $380 $370 $360
2) Data Computer Systems is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's IRR can be less than the WACC (and even negative), in which case it will be rejected.
Year 0 1 2 3
Cash flows -$1,500 $600 $550 $500
3) XYZ Corp. is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's IRR can be less than the WACC or negative, in both cases it will be rejected.
Year 0 1 2 3
Cash flows -$1,200 $300 $400 $600
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