You have the following cash flows for a possible project: Years Cash flows 0 -3000 1...
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You have the following cash flows for a possible project: Years Cash flows 0 -3000 1 700 2 750 3 4 5 1,000 800 700 Calculate the DCF The discount rates should be in a percentage format to two decimal places. What is NPV at 10%? What is the NPV at 15%? 6 400 What is the NPV at 25%? Have one set of calculations so that by changing the discount rate in a different cell it will automatically change the DCF and NPV. 2. Would you accept or reject the project at 10%? Would you accept or reject the project at 15%? Would accept or reject the project at 25% 3. Using goal seek, what is the IRR of this project? 7 200 You have the following cash flows for a possible project: Years Cash flows 0 -3000 1 700 2 750 3 4 5 1,000 800 700 Calculate the DCF The discount rates should be in a percentage format to two decimal places. What is NPV at 10%? What is the NPV at 15%? 6 400 What is the NPV at 25%? Have one set of calculations so that by changing the discount rate in a different cell it will automatically change the DCF and NPV. 2. Would you accept or reject the project at 10%? Would you accept or reject the project at 15%? Would accept or reject the project at 25% 3. Using goal seek, what is the IRR of this project? 7 200
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To calculate the Net Present Value NPV of the project with the given cash flows we need to discount ... View the full answer
Related Book For
Corporate Finance and Investment decisions and strategies
ISBN: 978-1292064062
8th edition
Authors: Richard Pike, Bill Neale, Philip Linsley
Posted Date:
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