ecntrk
Jul 12, 2010, 01:56 PM
Net Present Value and IRR problems
Period 0 1 2 3 4 5 6 7
Project
A Investment $(65,000)
Cash Flows $15,000 $19,000 $14,000 $25,000 $10,000 $9,000 $15,000
B Investment $(1,000)
Cash Flows $90 $275 $650 $500 $250 $300 $50
1 For "A" above, calculate the Net Present Value using a 15% discount rate.
2 For "B" above, calculate the Net Present Value using a 12% discount rate.
3 For "A" above, calculate the Internal Rate of Return.
4 For "b" above, calculate the Internal Rate of Return.
Period 0 1 2 3 4 5 6 7
Project
A Investment $(65,000)
Cash Flows $15,000 $19,000 $14,000 $25,000 $10,000 $9,000 $15,000
B Investment $(1,000)
Cash Flows $90 $275 $650 $500 $250 $300 $50
1 For "A" above, calculate the Net Present Value using a 15% discount rate.
2 For "B" above, calculate the Net Present Value using a 12% discount rate.
3 For "A" above, calculate the Internal Rate of Return.
4 For "b" above, calculate the Internal Rate of Return.