You are evaluating a project that has the following cash flows: -100 today, then cash inflows of 20, 30, and 40 for the next three years, respectively, and thereafter cash flows grow at 5% per year forever. (E.g. the cash flow at time 4 is 5% greater than 40 or 42).

a. What is the NPV if the discount rate is 15%?

b. What is the IRR (show to at least one decimal place)?

Posted Date: 2/20/2013 12:34:05 AM | Location : United States

Ask an Expert

Related Discussions:- Calculate the irr, Assignment Help, Ask Question on Calculate the irr, Get Answer, Expert's Help, Calculate the irr Discussions

Write discussion on Calculate the irr
Your posts are moderated

Write your message here..

Related Questions

Calculate the beta for corporation, 1.) Calculate the beta for your corpora... 1.) Calculate the beta for your corporation.  First you need to calculate the monthly return for your corporation for the recent 60-month period (use April 2006 through March 2011)

Explain the mechanisms of the equity price channels, QUESTION (a) Compa... QUESTION (a) Compare and contrast the two major transmission channels that characterizes the credit view. (b) Discuss which asset price channel of transmission of monetary p

Calculate the new money multiplier, The reserve requirement is 20%. Assumin... The reserve requirement is 20%. Assuming banks have no desire to hold excess reserves, calculate the money multiplier. Now assume the banks want to hold 20% of their reserves in ad

What is absolute poverty and relative poverty, What is absolute poverty and... What is absolute poverty and relative poverty? Absolute poverty: It is an income level below that essential to meet fundamental requirements. The UN measure of absolute

Explain the 3 different ways of calculating national income, QUESTION (... QUESTION (a) Explain the 3 different ways of calculating national income. (b) Does the National Income figure accurately reflect the living standard of a population? Discuss

Effectiveness of market approaches in promotion development, Analyse the ef... Analyse the effectiveness of market approaches into promoting development. Assessing the effectiveness of some system, planned, market or mixed depends onto the choice of displ

Calculate the correlation coefficient, Pick a corporation.  Create the same... Pick a corporation.  Create the same return column for the same 60 months for this corporation. For this 60-month period what is the correlation coefficient between the monthly ret

Sources of oligopoly, #sources of oligopolyn.. #sources of oligopolyn..

P-value associated with coefficients t-statistic, β1=0 e5.1 from stock and ... β1=0 e5.1 from stock and watson 3rd edition introduction to econometrics Using the data set CPS08 described  run a regression of average hourly earnings (AHE) on Age and carry out

Discuss the various ehr strategies for attracting talents, QUESTION Org... QUESTION Organisations have long been concerned with attracting and retaining talented employees. The primary reason is that they depend on the skills and talent of their workf