Question: Problem 3 : Initial Investment = Cash Flow Year 1 Cash Flow Year 2 + Cash Flow Year Y (1 +IRR) 1 (1+IRR ) 2

Problem 3:

2 + Cash Flow Year Y (1 +IRR) 1 (1+IRR ) 2

(1+IRR)YCash Flow Year 1 Cash Flow Year 2 Cash Flow Year Y

NPV = (1 + discount rate)1 (1 + discount rate )2 (1

Initial Investment = Cash Flow Year 1 Cash Flow Year 2 + Cash Flow Year Y (1 +IRR) 1 (1+IRR ) 2 (1+IRR)YCash Flow Year 1 Cash Flow Year 2 Cash Flow Year Y NPV = (1 + discount rate)1 (1 + discount rate )2 (1 + discount rate)

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