Part 3: Project X requires an initial investment of $35,000 and is expected to generate revenues of
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Question:
Part 3: Project X requires an initial investment of $35,000 and is expected to generate revenues of $15,000, $23,000 and $29,000 for the first, second and third years, respectively.
Compute the net present value (NPV) for this investment using an annual interest rate of 5 percent and interpret the result.
Find an annual interest rate, which yields a net present value of $10,000 after three years for the project.
Calculate the Internal Rate of Return of the project and explain IRR value.
Note: Use goal-seeking analysis and present this information on a worksheet titled "Question 3" with a table showing your findings.
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