Question: please answer asap and show your work dont use excel Question 8: 1. Your brother-in-law has discovered another lost gold mine in the Arizona desert.
Question 8: 1. Your brother-in-law has discovered another lost gold mine in the Arizona desert. To help fund his expedition, he wants you to give him $15,000 today (to), and another $10,000 at the end of the first year (t1). You must then contribute $8,000/year for periods t2ts. He'll then give you $100,000 in Year 6(t0) when the gold is recovered. Use a discount rate of 13%. What is the NPV and IRR of this proposal? What does the IRR tell you and do you trust it? Why or why not? Why do you think the discount rate is so high? Please draw a number line for this project. Question 8: 1. Your brother-in-law has discovered another lost gold mine in the Arizona desert. To help fund his expedition, he wants you to give him $15,000 today (to), and another $10,000 at the end of the first year (t1). You must then contribute $8,000/year for periods t2ts. He'll then give you $100,000 in Year 6(t0) when the gold is recovered. Use a discount rate of 13%. What is the NPV and IRR of this proposal? What does the IRR tell you and do you trust it? Why or why not? Why do you think the discount rate is so high? Please draw a number line for this project
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