Question: having trouble with these 2 A project costs $5,000 at t and will generate annual cash flows of $750 for 10 years, starting at the
A project costs $5,000 at t and will generate annual cash flows of $750 for 10 years, starting at the discount rate is 6% a What is the NPV? 6. What is the IRR?(Write down the equation for the IRR and get the solution using Excel or the calculator) A project costs $5,000 and will generate annual cash flows of $200 in the first year, $300 in the second year and $400 in the third year. The cash flow is then expected to grow at 3% every year forever. The discount rate is 12% a What is the NPV? b. Write down the equation for the IRR. Then find the IRR using Goal Seek in Excel (Note: The IRR function won't give you the right solution for this question, because the IRR function can't deal with perpetuities or growing perpetuities)
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