Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Using the excel calculations in the attached file, calculate the following: If the project required a $20,000 investment and has the following cash flows, calculate

Using the excel calculations in the attached file, calculate the following:
If the project required a $20,000 investment and has the following cash flows, calculate the NPV assume the discount rate of 12%
If you modified the initial investment amount to $8,000 what would the NPV be?
With the $8,000 Investment, what discount rate would case the Investment to have a zero net present value?
image text in transcribed
image text in transcribed
If the project required a $20,000 investment and has the following cash flows, calculate the NPV and IRR assume the discount rate of 12% Discount rate 12% Year 0 Year 1 Year 2 Year 3 (20,000) 5000 5000 5000 Year o (20,000) Year 1 5,000 Year 2 5,000 Year 3 5,000 Cashflow Discount factor Present Value (PV) NPV (Net PV) IRR 3 5 5 If the project required a $8,000 investment and has the following cash flows, calculate the NPV and IRR assume the discount rate of 15% 7 3 Discount rate 12% 0 1 2 Year 0 Year 1 Year 2 3 (8,000) 5000 5000 5000 Year 3 14 15 16 17 18 19 Year o (8,000) Year 1 5,000 Year 3 Year 2 5,000 5,000 Cashflow Discount factor Present Value (PV) 20 21 22 NPV (Net PV) 23 24 25 IRR 26 27 28 29 30 31

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions