Question: Using the excel calculations in the attached file, calculate the following: If the project required a $20,000 investment and has the following cash flows, calculate

If the project required a $20,000 investment and has the following cash flows, calculate the NPV and IRR assume the discount rate of 12% Discount rate 12% Year 0 Year 1 Year 2 Year 3 (20,000) 5000 5000 5000 Year o (20,000) Year 1 5,000 Year 2 5,000 Year 3 5,000 Cashflow Discount factor Present Value (PV) NPV (Net PV) IRR 3 5 5 If the project required a $8,000 investment and has the following cash flows, calculate the NPV and IRR assume the discount rate of 15% 7 3 Discount rate 12% 0 1 2 Year 0 Year 1 Year 2 3 (8,000) 5000 5000 5000 Year 3 14 15 16 17 18 19 Year o (8,000) Year 1 5,000 Year 3 Year 2 5,000 5,000 Cashflow Discount factor Present Value (PV) 20 21 22 NPV (Net PV) 23 24 25 IRR 26 27 28 29 30 31
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