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Year Cash Flow to Equity ($) 0 -1,000,000 1 600,000 2 400,000 3 200,000 Requirements: Calculate the NPV at a 15% cost of equity. Find
Year | Cash Flow to Equity ($) |
0 | -1,000,000 |
1 | 600,000 |
2 | 400,000 |
3 | 200,000 |
Requirements:
- Calculate the NPV at a 15% cost of equity.
- Find the IRR.
- Determine the modified internal rate of return (MIRR) assuming a finance rate of 15% and a reinvestment rate of 10%.
- Assess the project viability based on NPV and IRR.
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