If you invested $320 million into a project today, and achieved operating cash flows of $180million, $60 million, $50 million, $50 million, and $40 million, how would you measure the following:

a. NPV (assuming 6% cost of capital) 

b. IRR 

c. How would you mathematically and verbally describe NPV relative to the IRR?

Answer rating: 100% (QA)

To calculate the NPV Net Present Value and IRR Internal Rate of Return we need to consider the initial investment and the series of cash flows over ti... View the full answer