Question: I need help finding the NPV and IRR. This question has to have specific answers. Butler International Limited is evaluating a project in Erewhon. The

I need help finding the NPV and IRR. This question has to have specific answers.

Butler International Limited is evaluating a project in Erewhon. The project will create the following cash flows: Year 0 1 2 3 4 Cash Flow -$ 950,000 285,000 345,000 415,000 255,000 All cash flows will occur in Erewhon and are expressed in dollars. In an attempt to improve its economy, the Erewhonian government has declared that all cash flows created by a foreign company are \"blocked\" and must be reinvested with the government for one year. The reinvestment rate for these funds is 4 percent. If Butler uses a required return of 11 percent on this project, what are the NPV and IRR of the project? (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16)) NPV IRR $
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
