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Unformatted text preview: net present value (NPV) if the required rate of return is 12%. Title: IRR with equal CF 4. Initial Outlay Cash Flow in Period 0 1 2 3 4-$20,000 $7,400 $7,400 $7,400 $7,400 What is the Internal Rate of Return (to nearest whole percent)? If companys required rate of return is 10%, what is your decision? Title: NPV with unequal CF 5. ABC Company is considering a 3-year project that has a cost of $100,000. The project will generate after-tax cash flows of $50,000 in year one, $40,000 in year two, and $30,000 in year three. Assume that the firm's proper rate of discount is 10%. What is the project's Net Present Value? If required rate is 12%, NPV? IRR?...
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- Spring '11