Question: G15 2 COST B 5 5 7 9 0 1 2 A 3 INTERNAL RATE OF RETURN 4 5 Finance Rate 6 Reinvestment Rate
G15 2 COST B 5 5 7 9 0 1 2 A 3 INTERNAL RATE OF RETURN 4 5 Finance Rate 6 Reinvestment Rate 7 8 9 0 1 2 3 fix B YEAR =G2+G3+G4+G5+G6+G7+G8+G9+G10+G11+G12 C D E F G AFTER TAX CASH FLOW Reinvestment Rate 11% NPV of Cash Flows 0 -$450,000 1 -$450,000 1 30,000 0.90090090 $27,027 2 35,250 0.81162243 $28,610 3 38,000 0.73119138 $27,785 4 38,000 0.65873097 $25,032 5 40,000 0.59345133 $23,738 6 42,000 0.53464084 $22,455 7 45,000 0.48165841 $21,675 8 45,000 0.43392650 $19,527 9 48,000 0.39092477 $18,764 10 600,000 0.35218448 $211,310.69 8% NPV 8%= 425923.13 NPV 11% -$24,076.87 5% IRR 8%= 10.17% IRR 11% = 10.17% MIRR 5%= 8.92% H
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