Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Question 8 Assuming a project having the following cash flows: Year 0 1 2 3 4 5 6 7 8 Cash flow -10000 400 -500
| Question 8 | Assuming a project having the following cash flows: | |||||||||
| Year | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | |
| Cash flow | -10000 | 400 | -500 | 6000 | 1000 | 900 | 2000 | 500 | 1500 | |
| a. What is the NPV of this project if the discount rate is 5%? | ||||||||||
| Report the answer with 2 numbers after decimal place | ||||||||||
| b. What is the IRR of this project? | ||||||||||
| Report the answer in percentage term with 2 numbers after decimal place such as 12.43%. | ||||||||||
| c. What discount rate will make NPV of this project equals to 795.97 | ||||||||||
| Report the answer in percentage term with 2 numbers after decimal place such as 12.43%. | ||||||||||
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Financial Management for Public Health and Not for Profit Organizations
Authors: Steven A. Finkler, Thad Calabrese
4th edition
133060411, 132805669, 9780133060416, 978-0132805667
