Question

A project has the following cash flows:

  

Year	Cash Flow
0	$	39,500
1	–	18,500
2	–	29,500

  

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.)

  

IRR

%

  

What is the NPV of this project, if the required return is 11 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.)

  

NPV

$

    

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.)

  

NPV

$

   

What is the NPV of the project if the required return is 22 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

  

NPV

$

Answer 1

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.) Year Cash Flow 0 39500 1 -18500 2 -29500 IRR 12.95%

Using IRR Excel Funtion

What is the NPV of this project, if the required return is 11 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.) Year Cash Flow PV factor 11% PV 0 39500 1 39500 1 -18500 0.900900901 -16666.7 2 -29500 0.811622433 -23942.9 NPV -1109.53

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.)

Year	Cash Flow	PV factor 0%	PV
0	39500	1.0000	39500
1	-18500	1.0000	-18500
2	-29500	1.0000	-29500
NPV			-8500

What is the NPV of the project if the required return is 22 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Year Cash Flow PV factor22% PV 0 39500 1.0000 39500 1 -18500 0.8197 -15163.9 2 -29500 0.6719 -19819.9 NPV 4516.125