Question
Project A s IRR is 8% and WACC is 11%. Cash flows Year Project A 1 $5,500 2 $1,500 3 $2,500 4 $3,500 5 $1,500
Project A s IRR is 8% and WACC is 11%.
|
| Cash flows |
| Year | Project A |
| 1 | $5,500 |
| 2 | $1,500 |
| 3 | $2,500 |
| 4 | $3,500 |
| 5 | $1,500 |
| 6 | $2,000 |
| 7 | $2,500 |
Using given information
a )Calculate the initial investment of the project.
b) Calculate NPV and MIRR of the project. (Remember CF0 must be negative, otherwise you will get an error.)
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Principles Of Project Finance
Authors: E. R. Yescombe
2nd Edition
0123910587, 9780123910585
