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