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Please show how to enter into a TI-84 calculator. NO EXCEL please. . 6. For the following cash flows, find the NPV and IRR for
Please show how to enter into a TI-84 calculator. NO EXCEL please.
. 6. For the following cash flows, find the NPV and IRR for a project. Use a 12.5% discount rate for the NPV. Year Investment Projected Cash Projected Cash Net Projected Inflow Outflow Cash Flows ($000) ($000) 2015 $18,546 ($000) (5000) 2016 $44,550 $52,250 ($7.700) 2017 $54,256 $54,892 ($636) 2018 $62,025 $58,000 $4,025 2019 $68,000 $61,258 $5,742 2020 $74,555 $66,598 $7,957 2021 $78,562 $71,964 $6,598 2022 $82,365 $77,125 $5,240 2023 $86,879 $83,124 $3.755 2024 $90,125 $88,654 $1,471 2025 $96,526 $92,000 $4.526 7. NPV = ($5,522.50) at 12.5% IRR = 7.56% Tyson Foods is considering the acquisition of a popular foods company. They estimate the following proforma cash flows for the next 15 years. After-tax hurdle rate for Tyson Foods is 6%. Find the NPV and IRR for this acquisition. Should Tyson continue to pursue the acquisition based on the data estimates? Net Estimated Estimated Investment Cash Inflow Cash Outflow Year (min) (mit) (mil) 2017 $ 17,500.00 2018 $ 8,000.00 $ 7.580.00 2019 $ 8,560.00 $ 8,034.80 2020 $ 9,159.20 $ 8,516.89 2021 $ 9,800.34 $ 9,027.90 2022 $10.486.37 $ 9,569.58 2023 $11,220.41 $ 10,143.75 2024 $12,006.84 $ 10.752.37 2025 $12,846.25 $ 11,397.52 2026 $13,745.49 $ 12,081.37 2027 $ 14,707.67 $ 12,806.25 2028 $15,737.21 $ 13,574.63 2029 $ 16,838.82 $ 14,389.10 2030 $18,017.53 $ 15,252.45 2031 $ 19,278.76 $ 16,167.60 2032 $20,628.27 $ 17,137.65 NPV = ($ 3.766.20 million) at 6% IRR = 3.396% No, Tyson should not pursue unless the future cash flow estimates change Step by Step Solution
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