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    ecntrk's Avatar
    ecntrk Posts: 1, Reputation: 1
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    #1

    Jul 12, 2010, 01:56 PM
    calculate the Net Present Value using a 15% discount rate. Investment ca
    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.
    SFLori55's Avatar
    SFLori55 Posts: 2, Reputation: 1
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    #2

    Jul 12, 2010, 06:00 PM
    a.
    NPV = 65,411.04
    IRR = 15.22%
    B.
    NPV= 1,396.47
    IRR = 23.36%

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