Suppose we have a project with the following cash flows You need to use the functions built-in
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Question:
Suppose we have a project with the following cash flows | ||||||
You need to use the functions built-in in excel to answer the question. Manually filling in the answer will receive 0 point |
Year | CFs |
0 | -110,000 |
1 | 13,000 |
2 | 17,050 |
3 | 20,000 |
4 | 29,010 |
5 | 30,000 |
6 | 27,800 |
7 | 17,040 |
8 | 22,080 |
9 | 12,100 |
a) What is the net present value of this project, assuming the required rate of return is 8%? (5 points) |
NPV= |
b) What is the IRR of the project? (2.5 points) |
IRR= |
c) Do you accept the project, why? (2.5 points) |
d) If the required rate is 12%, do you accept the project, why? (5 points) |
NPV= |
e) Create NPV profile with graph, using the information below (5 points) |
Return | NPV |
0% | |
5% | |
10% | |
15% | |
20% | |
25% | |
30% | |
35% | |
40% |
Related Book For
Operations Management Managing Global Supply Chains
ISBN: 978-1506302935
1st edition
Authors: Ray R. Venkataraman, Jeffrey K. Pinto
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