Calculation of arithmetic geometric mean and npv anderson

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Reference no: EM13356064

Calculation of Arithmetic ,Geometric Mean and NPV .

Anderson International Limited is evaluating a project in Erewhon. The project will create the following cash flows:

Year

Cash Flow

0

-$458,000

1

173,000

2

198,000

3

213,000

4

191,000

All cash flows will occur in Erewhon and are expressed in dollars. In an attempt to improve its economy, the Erewhon government has decided that all cash flows created by a foreign company are "blocked" and must be reinvested with the government for one year. The reinvestment rate for these is 8 percent. Anderson uses a 15 percent required return on this project. 
Required:
(a) What is the NPV of the project? (Round your answers to 2 decimal places, e.g. 32.16.)
NPV $ _____

(b) What is the IRR of the project? (Do not include the percent sign (%). Round your answers to 2 decimal places, e.g. 32.16.)

IRR _____ percent

(c) Is the IRR you calculated the MIRR of the project? 
A.Yes
B.No

Reference no: EM13356064

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