Question: Here are the cash flows for a project under consideration: C 0 C 1 C 2 $ 7,020 + $ 4,860 + $ 18,360 a.
| Here are the cash flows for a project under consideration: |
| C0 | C1 | C2 | |||||||||
| $ | 7,020 | + | $ | 4,860 | + | $ | 18,360 | ||||
| a. | Calculate the projects net present value for discount rates of 0, 50%, and 100%. (Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations. Round your answers to the nearest whole dollar.) |
| Discount rate | Net present value |
| 0% | $ |
| 50% | $ |
| 100% | $ |
| b. | What is the IRR of the project? (Do not round intermediate calculations. Enter your answer as a whole percent.) |
| IRR | % |
Can someone please include the formulas on how to solve this? I've seen a few similar questions answered on Chegg but they don't include the rationale of how the problem is solved. I've been fighting with this problem for three days now and finally gave in. Thanks.
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