Question

Q2. The initial investment for a project is $ 100,000; the expected annual net cash flows are given below. Suppose that the company's cost of capital is 10%, calculate and comment on the Project's IRR.\ years\\Cash flows) (DF 10%)\\1 33,000 0.909\\2 33,000 0.826\\3 33,000 0.751\\4 35,000 0.683\\5 35,000 0.621\\Salv. value.40,000 0.621\\IRR = r_1 + \left[ \frac{r_2 - r_1}{NPV_2 - NPV_1} \right] NPV_1

          Q2. The initial investment for a project is $ 100,000; the expected annual net cash flows are given below. Suppose that the company's cost of capital is 10%, calculate and comment on the Project's IRR.\
years\\Cash flows) (DF 10%)\\1 33,000 0.909\\2 33,000 0.826\\3 33,000 0.751\\4 35,000 0.683\\5 35,000 0.621\\Salv. value.40,000 0.621\\IRR = r_1 + \left[ \frac{r_2 - r_1}{NPV_2 - NPV_1} \right] NPV_1

$Q2. The initial investment for a project is 100,000; the expected annual net cash flows are given below. Suppose that the company's cost of capital is 10%, calculate and comment on the Project's IRR.\ years Cash flows) (DF 10%)\\1 33,000 0.909\\2 33,000 0.826\\3 33,000 0.751\\4 35,000 0.683\\5 35,000 0.621\\Salv. value.40,000 0.621\\IRR = r1 + \left[ \frac{r2 - r1}{NPV2 - NPV1} \right] NPV1$

Added by Judy R.

Question

Please give Ace some feedback