You have the following information on a project\'s cash flows. The cost of capit

Question

You have the following information on a project's cash flows. The cost of capital is 11%.

Year Cash flows 0 -$147,000 1 43,000 2 43,000 3 43,000 4 36,000 5 65,000 The NPV of the project is $ Year Cash flows 0 -$147,000 1 43,000 2 43,000 3 43,000 4 36,000 5 65,000 (round it to two decimal places); the IRR is percent (round it to two decimal places); the payback is years (round it to two decimal places). Year Cash flows 0 -$147,000 1 43,000 2 43,000 3 43,000 4 36,000 5 65,000 You have the following information on a project's cash flows. The cost of capital is 11%. The NPV of the project is $ (round it to two decimal places); the IRR is percent (round it to two decimal places); the payback is years (round it to two decimal places).

Explanation / Answer

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 -147000 43000 43000 43000 36000 65000 Cost of capital 11% NPV 20368.38 IRR 16.11% 1 2 3 4 5 Cash flows 147000 43000 43000 43000 36000 65000 Cumulative 43000 86000 129000 165000 230000 0.500 Payback period 3.5 years

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