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Year Cash Flow ($) 0 -7,000,000 1 2,500,000 2 2,500,000 3 2,500,000 4 2,500,000 5 2,500,000 The company's discount rate is 11%. Plot the NPV
Year | Cash Flow ($) |
0 | -7,000,000 |
1 | 2,500,000 |
2 | 2,500,000 |
3 | 2,500,000 |
4 | 2,500,000 |
5 | 2,500,000 |
The company's discount rate is 11%.
- Plot the NPV profile.
- What is the IRR?
- Should the project be accepted if the discount rate is 11%?
- Calculate the Payback Period.
- Compute the Average Accounting Return (AAR).
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