Question

Compute the NPV and the IRR of the following cash flows @ a discount rate of 10% using first, your calculator and then use Excel. You should get the same answers. Year Project A Project B 0 -1000 -1000 1 1000 3000 2 4000 4000 3 4000 4000 4 4000 4000 5 3000 1000

Name: compute the npv and the irr of the following cash flows a discount rate of 10 using first your calculator and then use excel you should get the same answers year project a project b 0 1000 1 20276
Uploaded: 2023-10-19T03:36:59-08:00
Duration: 5 min 28 s
Channel: Madhur L
Description: compute the npv and the irr of the following cash flows a discount rate of 10 using first your calculator and then use excel you should get the same answers year project a project b 0 1000 1 20276

          Compute the NPV and the IRR of the following cash flows @ a
discount rate of 10% using first, your calculator and
then use Excel. You should get the same
answers.
Year
    
Project A
    
Project B
0
-1000
-1000
1
1000
3000
2
4000
4000
3
4000
4000
4
4000
4000
5
3000
1000

Added by Kathleen M.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Madhur L

10/19/2023

Step 1

For Project A: PV of Year 1 cash flow = 1000 / (1 + 0.1)^1 = 909.09 PV of Year 2 cash flow = 4000 / (1 + 0.1)^2 = 3305.79 PV of Year 3 cash flow = 4000 / (1 + 0.1)^3 = 3003.31 PV of Year 4 cash flow = 4000 / (1 + 0.1)^4 = 2730.98 PV of Year 5 cash flow = 3000 / Show more…

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Compute the NPV and the IRR of the following cash flows @ a discount rate of 10% using first, your calculator and then use Excel. You should get the same answers. Year Project A Project B 0 -1000 -1000 1 1000 3000 2 4000 4000 3 4000 4000 4 4000 4000 5 3000 1000