In: Finance
Project Y has following cash flows: C 0 = -800, C 1 = +5,000, and C 2 = -5,000. Calculate the IRRs for the project.
25 percent and 400 percent. |
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125 percent and 500 percent. |
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-44 percent and 11.6 percent. |
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No IRRs exist for this project. |
Year | Cash flow | × factor@ 25.00% | Present value |
0 | $ (800.00) | 1.0000 | $ (800.00) |
1 | $ 5,000.00 | 0.8000 | $ 4,000.00 |
2 | $ (5,000.00) | 0.6400 | $ (3,200.00) |
$ - | |||
$ - | |||
NPV | 1.4400 | $ - |
Year | Cash flow | × factor@ 400.00% | Present value |
0 | $ (800.00) | 1.0000 | $ (800.00) |
1 | $ 5,000.00 | 0.2000 | $ 1,000.00 |
2 | $ (5,000.00) | 0.0400 | $ (200.00) |
$ - | |||
$ - | |||
NPV | 0.2400 | $ - |
Answer is:
25 percent and 400 percent. |
please rate. |