Question

In: Finance

An investment has the following cash flows: August 12, 2008 $ -1000 February 21, 2009 &

An investment has the following cash flows:

August 12, 2008 $ -1000

February 21, 2009 $ +100

October 7, 2010 $ +200

April 25, 2011 $ +900

May 18, 2012 $ +600

July 29, 2013 $ +300

November 12, 2014 $ +600

August 12, 2015 $ +900

June 30, 2016 $ -2800

Calculate the Net Present Value of this investment. Assume the annual discount rate is 14%.
Create a data table and graph illustrating the impact of the discount rate on the Net Present Value of this investment. Include a title and label the axes for the graph.
Use Solver to determine the Internal Rate of Return(s) associated with this investment.

Expert Solution

Answer a)

Answer b)

Answer c) Using solver getting the feasible solution ,

Solver parameter as

outcome for solver as: 18%.

jeff jeffy answered 2 hours ago

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