Question
RATE 10% Project (A) Project (B) Year 0 (5000) (5000) year 1 $1800.00 $400.00 Year 2 $1500.00 $900.00 Year 3 $1200.00 $1300.00 Year 4 $1000.00
RATE 10% Project (A) Project (B)
Year 0 (5000) (5000)
year 1 $1800.00 $400.00
Year 2 $1500.00 $900.00
Year 3 $1200.00 $1300.00
Year 4 $1000.00 $1500.00
Year 5 $800.00 $1800.00
A.Find the NPV for project A and project B- you can use this link or excel. http://www.investopedia.com/calculator/netpresentvalue.aspx (ENTER 0 FOR YEARS 6-10)
B.Find the IRR for project A and project B- you don't have to put in the initial investment as a negative number, only put in years 1-5 http://www.vindeep.com/Calculators/IRRCalculator.aspx
C.Calculate the payback period
D.Calculate the discounted payback period
E. Which project would you choose based on the NPV and IRR? (you have to view the NPV and IRR in isolation)
RATE 10% Project (A) Project (B)
Year 0 (5000) (5000)
year 1 $1800.00 $400.00
Year 2 $1500.00 $900.00
Year 3 $1200.00 $1300.00
Year 4 $1000.00 $1500.00
Year 5 $800.00 $1800.00
A.Find the NPV for project A and project B- you can use this link or excel. http://www.investopedia.com/calculator/netpresentvalue.aspx (ENTER 0 FOR YEARS 6-10)
B.Find the IRR for project A and project B- you don't have to put in the initial investment as a negative number, only put in years 1-5 http://www.vindeep.com/Calculators/IRRCalculator.aspx
C.Calculate the payback period
D.Calculate the discounted payback period
E. Which project would you choose based on the NPV and IRR? (you have to view the NPV and IRR in isolation)
RATE 10% Project (A) Project (B)
Year 0 (5000) (5000)
year 1 $1800.00 $400.00
Year 2 $1500.00 $900.00
Year 3 $1200.00 $1300.00
Year 4 $1000.00 $1500.00
Year 5 $800.00 $1800.00
A.Find the NPV for project A and project B- you can use this link or excel. http://www.investopedia.com/calculator/netpresentvalue.aspx (ENTER 0 FOR YEARS 6-10)
B.Find the IRR for project A and project B- you don't have to put in the initial investment as a negative number, only put in years 1-5 http://www.vindeep.com/Calculators/IRRCalculator.aspx
C.Calculate the payback period
D.Calculate the discounted payback period
E. Which project would you choose based on the NPV and IRR? (you have to view the NPV and IRR in isolation)
RATE 10% Project (A) Project (B)
Year 0 (5000) (5000)
year 1 $1800.00 $400.00
Year 2 $1500.00 $900.00
Year 3 $1200.00 $1300.00
Year 4 $1000.00 $1500.00
Year 5 $800.00 $1800.00
A.Find the NPV for project A and project B- you can use this link or excel. http://www.investopedia.com/calculator/netpresentvalue.aspx (ENTER 0 FOR YEARS 6-10)
B.Find the IRR for project A and project B- you don't have to put in the initial investment as a negative number, only put in years 1-5 http://www.vindeep.com/Calculators/IRRCalculator.aspx
C.Calculate the payback period
D.Calculate the discounted payback period
E. Which project would you choose based on the NPV and IRR? (you have to view the NPV and IRR in isolation)
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Money Banking And Financial Markets
Authors: Stephen Cecchetti, Kermit Schoenholtz
6th Edition
1260226786, 9781260226782
