What is the IRR for this project? (Do not round intermediate calculations. Enter

Question

What is the IRR for this project? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

What is the NPV of this project, if the required return is 12 percent? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

What is the NPV of the project if the required return is 0 percent? (Do not round intermediate calculations. A negative amount should be indicated by a minus sign.)

What is the NPV of the project if the required return is 24 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Explanation / Answer

IRR 1) Year Cash Flow 0 $ (46,500.00) 1 $   25,500.00 2 $   36,500.00 IRR= 20% 2) NPV when required rate of return is 12% Year Cash Flow P.V Factor @12% for two years P.V 0 $ (46,500.00) 1 $ (46,500.00) 1 $   25,500.00 0.89286 $   22,767.93 2 $   36,500.00 0.79719 $   29,097.44 NPV $      5,365.37 3) NPV when required rate of return is 0% Year Cash Flow P.V Factor @0% for two years P.V 0 $ (46,500.00) 1 $ (46,500.00) 1 $   25,500.00 1 $   25,500.00 2 $   36,500.00 1 $   36,500.00 NPV $   15,500.00 4) NPV when required rate of return is 24% Year Cash Flow P.V Factor @24% for two years P.V 0 $ (46,500.00) 1 $ (46,500.00) 1 $   25,500.00 0.80645 $   20,564.48 2 $   36,500.00 0.65036 $   23,738.14 NPV $   (2,197.39)

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.