Question

A project has annual cash flows of $4,000 for the next 10 years and then $10,500 each year for the following 10 years. The IRR of this 20-year project is 11.69%. If the firm's WACC is 8%, what is the project's NPV? Do not round intermediate calculations. Round your answer to the nearest cent.

Answer 1

Answe is NPV = $59,475. Calculations & Formaulas given Below

Note:- IRR is not relavent to calculate NPV hence ignored

	Cash Flows	Discounted Cash Flows
Year	WACC	8%
1	4000	3,704
2	4000	3,429
3	4000	3,175
4	4000	2,940
5	4000	2,722
6	4000	2,521
7	4000	2,334
8	4000	2,161
9	4000	2,001
10	4000	1,853
11	10500	4,503
12	10500	4,170
13	10500	3,861
14	10500	3,575
15	10500	3,310
16	10500	3,065
17	10500	2,838
18	10500	2,628
19	10500	2,433
20	10500	2,253
NPV		59,475