What is the internal rate of return, net present value with a 10% interest rate, and...

What is the internal rate of return, net present value with a 10% interest rate, and net present value with a 20% interest rate of this project. The cash flows are as follows:

Year 0 - Initial investment - 20,000 (make sure to make investments negative values in Excel cash flow)

Year 1 - 8,000

Year 2 - 8,000

Year 3 - 9,000

Year 4- 12,000

No value after year 4.

Expert Solution

IRR=20%

Net present value, NPV @10% interest rate =8842.29

Net present value, NPV @20% interest rate=3217.59

jeff jeffy answered 1 year ago

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