Question

1. A firm is starting a new project that will cost $200,000. It is projected to last 5 years and to generate cash flows of $50,000, $70,000, $90,000, $50,000 and $30,000 from Years 1 through 5 respectively. If the discount rate is 10%, what is the NPV of this project? Round to the nearest penny. Do not include any unit such as $, %, etc.  If there are multiple answers, then type NA.

2. A firm is starting a new project that will cost $200,000. It is projected to last 5 years and to generate cash flows of $50,000, $70,000, $90,000, $50,000 and $30,000 from Years 1 through 5 respectively. If the discount rate is 10%, what is the IRR of this project? Answer in the percent format. Round to the hundredth decimal place. Type only numbers without any unit ($, %, etc.)

Answer 1

J363 fx =SUM(1357:J362) F G Year PV@10% 357 358 359 Cashflows $ (200,000.00) $ 50,000.00 $ 70,000.00 $ 90,000.00 $ 50,000.00 $ 30,000.00 $ $ $ $ $ 0.909090909 0.826446281 0.751314801 0.683013455 0.620921323 NPV 360 361 362 PVCF (200,000.00) 45,454.55 57,851.24 67,618.33 34,150.67 18,627.64 23,702.43 Is 363 364

Defined Names Formula Auditing Calculation J363 Function Library fc =SUM(1357:362) G Year PV@10% PVCF =H357*1357 Cashflows -200000 50000 70000 90000 50000 30000 =1357/1.1 =1358/1.1 =1359/1.1 1=1360/1.1 =1361/1.1 361 362 =H358*1358 =H359*1359 =H360*1360 =H361*1361 =H362*1362 =SUM(1357:J362) NPV 363 364 365 366 367