Question
Year Cash flow 0 $(650,000,000) 1 $80,000,000 2 $121,000,000 3 $162,000,000 4 $221,000,000 5 $210,000,000 6 $154,000,000 7 $108,000,000 8 $86,000,000 9 $(72,000,000) Required return
| Year | Cash flow | |
| 0 | $(650,000,000) | |
| 1 | $80,000,000 | |
| 2 | $121,000,000 | |
| 3 | $162,000,000 | |
| 4 | $221,000,000 | |
| 5 | $210,000,000 | |
| 6 | $154,000,000 | |
| 7 | $108,000,000 | |
| 8 | $86,000,000 | |
| 9 | $(72,000,000) | |
| Required return | 12% |
| Payback period | 4.31 | |||
| IRR | 13.25% | =IRR(D8:D17) | ||
| NPV | $28,451,509.51 | =NPV(D19,D9:D17)+D8 | ||
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Derivative Products And Pricing The Das Swaps And Financial Derivatives Library
Authors: Satyajit Das
1st Edition
0470821647, 9780470821640
