Question

In: Finance

required rate of return = 15% year year cash flow ($ in millions) 0 -500 1...

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?

Solutions

Expert Solution

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.


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