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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?
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
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?
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