Question: Please provide EXCEL formula on how to solve this problem Anderson International Limited is evaluating a project in Erewhon. The project will create the following
Please provide EXCEL formula on how to solve this problem
| Anderson International Limited is evaluating a project in Erewhon. The project will create the following cash flows: |
| Year | Cash Flow |
|---|---|
| 0 | $ 1,220,000 |
| 1 | 395,000 |
| 2 | 460,000 |
| 3 | 355,000 |
| 4 | 310,000 |
| 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 3 percent. If the company uses a required return of 10 percent on this project, what are the NPV and IRR of the project? (A negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Enter your IRR answer as a percent.) |
NPV _________________
IRR __________________%
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