A project has the following cash flows: Year Cash Flow 0 - $ 38,000 1 – 17,000 2

Question

A project has the following cash flows:

Year Cash Flow

0 - $ 38,000

1 – 17,000

2 – 28,000

What is the IRR for this project? (Round your answer to 2 decimal places. (e.g., 32.16))

What is the NPV of this project, if the required return is 10 percent? (Negative amount should be indicated by a minus sign. Do not round intermediate answers and round your final answer to 2 decimal places. (e.g., 32.16))

  What is the NPV of the project if the required return is 0 percent? (Negative amount should be indicated by a minus sign.)

What is the NPV of the project if the required return is 20 percent? (Do not round intermediate answers and round your final answer to 2 decimal places. (e.g., 32.16))

What is the IRR for this project? (Round your answer to 2 decimal places. (e.g., 32.16))

What is the NPV of this project, if the required return is 10 percent? (Negative amount should be indicated by a minus sign. Do not round intermediate answers and round your final answer to 2 decimal places. (e.g., 32.16))

  What is the NPV of the project if the required return is 0 percent? (Negative amount should be indicated by a minus sign.)

What is the NPV of the project if the required return is 20 percent? (Do not round intermediate answers and round your final answer to 2 decimal places. (e.g., 32.16))

Explanation / Answer

Year 0 1 2 CF 38000 -17000 -28000 Dicount 0% 38000 -17000 -28000 NPV -7000 IRR 11% Discount rate 10% Year 0 1 2 CF 38000 -17000 -28000 Dicount 10% 38000 -15454.5 -23140.5 NPV -595.041 Discount rate 20% Year 0 1 2 CF 38000 -17000 -28000 Dicount 20% 38000 -14166.7 -19444.4 NPV 4388.889

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