A new financial analyst at Company X does the following NPV analysis.

Year	After-tax Cash flows	PV @ 12%
0	-100000	-100,000.00
1	30000	26,978.42
2	30000	24,261.17
3	35000	25,453.86
4	35000	22,890.16
5	35000	20,584.68
6	35000	18,511.40

He reports an NPV of $38,679.69, an IRR of 10.93% and a payback period of 5.02 years.

Check these results and correct his analysis if necessary.

Answer rating: 100% (QA)

To check the results of the financial analysts analysis lets calculate the NPV IRR and payback perio... View the full answer