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the answer in there is wrong! Anderson International Limited is evaluating a project in Erewhon. The project will create the following cash flows: Year Cash
the answer in there is wrong!
Anderson International Limited is evaluating a project in Erewhon. The project will create the following cash flows: Year Cash Flow 0 -$584,000 214,000 157,000 222,000 201,000 1 2 3 4 All cash flows will occur in Erewhon and are expressed in dollars. In an attempt to improve its economy, the Erewhonian government has declared that all cash flows created by a foreign company are "blocked" and must be reinvested with the government for one year. The reinvestment rate for these funds is 5 percent. Assume Anderson uses a required return of 11 percent on this project a. What is the NPV of the project? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the IRR of the project? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) $ 83,510.34 NPV IRR b. % MacBook Air 80 DDD COD 17 Step by Step Solution
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