Question
You are considering a project that requires an initial investment of $140,000 and provides annual cash flows of $28,000 for 6 years. The expected return
You are considering a project that requires an initial investment of $140,000 and provides annual cash flows of $28,000 for 6 years. The expected return is 10%. Determine the NPV and IRR. Complete the following table:
Year | Cash Flow | Present Value |
1 | $28,000 | |
2 | $28,000 | |
3 | $28,000 | |
4 | $28,000 | |
5 | $28,000 | |
6 | $28,000 | |
Initial Investment | $140,000 | |
NPV | ||
IRR (est) |
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Fundamental Accounting Principles
Authors: John J Wild, Ken Shaw
25th Edition
1260247988, 978-1260247985
