In: Finance
required rate of return = 15%
year
year | cash flow ($ in millions) |
0 | -500 |
1 | 90 |
2 | 100 |
3 | 150 |
4 | 180 |
5 | 190 |
6 | 140 |
7 | 100 |
8 | 80 |
9 | 60 |
10 | -50 |
1. make a spreadsheet using excel to calculate irr, mirr, npv,
2. using excel, draw npv profile and find "two" IRRs.
3. based on the analysis, should you take on this project?
here two image was posted which are give u answer of your question in excel sheet .
first image showing the calculation
and
second image represent the formula which i used to solve this question.
according to calculation the npv are positive at 15% rate of return so as npv are positive we accept the project .
if you have any query please tell in comment section.
Thank you.