A project is estimated to have cash flow (cash flow = CF) as follows (a negative...
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A project is estimated to have cash flow (cash flow = CF) as follows (a negative sign means cash outflows/cash outflows while a positive sign means cash inflows/cash receipts): Year 0: CF = -Rp 165 billion Year 1: CF = Rp 63.12 billion; NI = IDR 13.62 billion Year 2: CF = IDR 70.80 billion; NI = IDR 3.30 billion Year 3: CF = Rp 91.08 billion; NI = IDR 29.10 billion Average Book Value (average) = IDR 72 billion The expected yield of the project at the level of risk faced is 15%. It is expected that the project will return on investment within 2 years. Question: a) Calculate IRR b) Calculate PP A project is estimated to have cash flow (cash flow = CF) as follows (a negative sign means cash outflows/cash outflows while a positive sign means cash inflows/cash receipts): Year 0: CF = -Rp 165 billion Year 1: CF = Rp 63.12 billion; NI = IDR 13.62 billion Year 2: CF = IDR 70.80 billion; NI = IDR 3.30 billion Year 3: CF = Rp 91.08 billion; NI = IDR 29.10 billion Average Book Value (average) = IDR 72 billion The expected yield of the project at the level of risk faced is 15%. It is expected that the project will return on investment within 2 years. Question: a) Calculate IRR b) Calculate PP
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a To calculate the Internal Rate of Return IRR of the project you can use the given cash flows and t... View the full answer
Related Book For
Introduction to Finance Markets Investments and Financial Management
ISBN: 978-1118492673
15th edition
Authors: Melicher Ronald, Norton Edgar
Posted Date:
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