Question: Please show how you got the answers using excel or a financial calculator Given the following information about the cash flows of a project that

Please show how you got the answers using excel or a financial calculator

Given the following information about the cash flows of a project that lasts for 5 years, answer parts A, B and C. The initial outlay is $80,000, incremental cash flows for the next 5 years are $20,000, $30,000, $40,000, $40,000, $45,000. The discount rate is 13%.

A) What is the pay back period of the project?

A. 2.25 years.

B. 2.75 years.

C. 2.85 years.

D. 2.95 years.

B) What is the NPV of the project?

A. $37,872.

B. $30,291.

C. $46,786.

D. $53,899.

C) What is the IRR of the project?

A. 20.78%

B. 25.90%

C. 28.55%

D. 34.55%

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!