Question: please show work and steps so I can learn it Financial Planning & Control (PMBA 5373) Net Present Value and Internal Rate of Return Homework

please show work and steps so I can learn it
please show work and steps so I can learn it Financial Planning

Financial Planning & Control (PMBA 5373) Net Present Value and Internal Rate of Return Homework #18, 10 points due 11:59 p.m., Thursday 11/11/21 1. Consider an asset expected to generate the following finite set of cash flows. 0 1 2 3 4 5 years -$11500 $1500 $7500 S1200 S1200 $4800 As shown on the timeline, the cost of the asset is $11.500. Assume a required rate of return of 10% per year, compounded annually. A. Calculate the net present value (NPV) of this set of cash flows. B. Calculate the internal rate of return (IRR) of the set of cash flows. C. Based on the NPV should the company invest in this asset? Why or why not? D. Based on the IRR, should the company invest in this asset? Why or why not? 2. Consider the following set of cash flows to be generated by an asset under consideration for investment. 0 1 2 3 4 5 years -S8000 S1500 $0 $2100 $2275 S2100 The asset will cost $8000 to purchase. Assume a required rate of return of 9% per year, compounded annually. A Calculate the net present value (NPV) of this set of cash flows. B. Calculate the internal rate of return (IRR) of the set of cash flows. C. Based on the NPV, should the company invest in this asset? Why or why not? D. Based on the IRR, should the company invest in this asset? Why or why not

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