Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

Years 1 2 3 4 5 6 7 8 Cash Flows (52,125.00) 12,000.00 12,000.00 12,000.00 12,00

ID: 2640151 • Letter: Y

Question

Years                               1 2                             3 4                       5 6                    7 8
Cash Flows           (52,125.00)              12,000.00               12,000.00            12,000.00      12,000.00      12,000.00       12,000.00    12,000.00    12,000.00
NPV Function
10-2
IRR Function
10-3
MIRR Function
10-4
PI
Present Value
Outlay
PI

Years                               1 2                             3 4                       5 6                    7 8 Cash Flows           (52,125.00)              12,000.00               12,000.00            12,000.00      12,000.00      12,000.00       12,000.00    12,000.00    12,000.00 NPV Function 10-2 IRR Function 10-3 MIRR Function 10-4 PI Present Value Outlay PI

Years                               1 2                             3 4                       5 6                    7 8
Cash Flows           (52,125.00)              12,000.00               12,000.00            12,000.00      12,000.00      12,000.00       12,000.00    12,000.00    12,000.00
NPV Function
10-2
IRR Function
10-3
MIRR Function
10-4
PI
Present Value
Outlay
PI

Explanation / Answer

IRR=16%

NPV (Assuming Discounted Rate 10%)

Time Horizon (Years) Cash-In Initial investment/ Net Cash Flow Cash-Out 0 -52125 -52125 1 12000 0 12000 2 12000 0 12000 3 12000 0 12000 4 12000 0 12000 5 12000 0 12000 6 12000 0 12000 7 12000 0 12000 8 12000 0 12000 Total Inflow Total Outflow Total Net Flow Total 96000 -52125 43875