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You have the following cash flows for a possible project: Years Cash flows 0 -3000 1 700 2 750 3 4 5 1,000 800
You have the following cash flows for a possible project: Years Cash flows 0 -3000 1 700 2 750 3 4 5 1,000 800 700 Calculate the DCF The discount rates should be in a percentage format to two decimal places. What is NPV at 10%? What is the NPV at 15%? 6 400 What is the NPV at 25%? Have one set of calculations so that by changing the discount rate in a different cell it will automatically change the DCF and NPV. 2. Would you accept or reject the project at 10%? Would you accept or reject the project at 15%? Would accept or reject the project at 25% 3. Using goal seek, what is the IRR of this project? 7 200
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