A project has the following projected Cash Flows:

Year	0	1	2	3	4	5
Cash Flow	-$20000	$8000	$7000	$6000	$2000	$1500

 

Calculate the NPV's for this Cash Flow for each of the following % rates:

1. 5%
2. 9% 
3. 10%
4. Based on the NPV figures calculated above what would the IRR be rough? Rough extrapolation and a description of why you have chosen this % rate is required here.
5. 
   

Answer rating: 100% (QA)

NPV CF0 CF1 1r1 CF2 1r2 CFn 1rn Where CF0 cash flow at time 0 initial investment CF1 to CFn cash flo... View the full answer