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The BLANK Company is considering an investment with an initial cost of $250,000 and annual cash inflows as follows. The company requires a return of
The BLANK Company is considering an investment with an initial cost of $250,000 and annual cash inflows as follows. The company requires a return of 12%. Year Cash Inflows (Outflows) 0 ($250,000) 1 70,000 2 33,000 3 50,000 4 38,000 5 75,000 6 50,000 7 25,000 8 62,500 Discount rate 12%
Using the NPV function, compute the net present value of this investment.
Using the IRR function, compute the internal rate of return for this investment.
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