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Please help Calculating NPV and IRR Businesses use NPV and IRR to determine whether a project will add - value for shareholders. After watching the
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Calculating NPV and IRR
Businesses use NPV and IRR to determine whether a project will addvalue for shareholders. After watching the CFA Level I Corporate Finance video, answer the following questions.
According to the video, how should a company use NPV and IRR to decide whether a project should be undertaken?
In the video, Trim Corp. is considering a project that is expected to have cash inflows of $ $ and $ in years and respectively. What do you think would happen to the NPV of the project if the company expected the same cash flows, but in reverse order? In other words, what do you think would happen to the NPV of the $ were the cash inflow in year $ were the cash inflow for year and $ were the cash inflow for year Using the same discount rate as in the video, calculate the NPV for the project with this string of cash outflows.
The Tokyo Olympics
After watching How the Tokyo Olympics Became the Most Expensive Summer Game Ever video answer the following questions.
As you saw in the video, the capital investment a city must undertake to host the Olympic Games is massive. Given the costs discussed in the video, create and Excel spreadsheet to estimate the NPV and IRR of hosting the Olympic Games for the city.
How would the number in your Excel spreadsheet change because of the COVID pandemic? Create a NPV profile for Tokyos Olympic Games given the changes that were caused by the pandemic.
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