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In: Finance

This problem is useful for testing the ability of financial calculator and spreadsheets. Consider the following...

This problem is useful for testing the ability of financial calculator and spreadsheets. Consider the following cash flows How many different IRRs are there? (hint: search between 20 percent and 70 percent When should we take this project?

Year Cash Flow
0 $ (3,024.00)
1 $ 17,172.00
2 $(36,420.00)
2 $ 34,200.00
4

$ (1,200.00)

Create an NPV profile graph in excel

Solutions

Expert Solution

There is no IRR between 20% and 70%. IRR is 180.36%


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