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| Teaching Since: | Apr 2017 |
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| Questions Answered: | 3232 |
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MBA,MCS,M.phil
Devry University
Jan-2008 - Jan-2011
MBA,MCS,M.Phil
Devry University
Feb-2000 - Jan-2004
Regional Manager
Abercrombie & Fitch.
Mar-2005 - Nov-2010
Regional Manager
Abercrombie & Fitch.
Jan-2005 - Jan-2008
Problem 5-21 Payback and NPV
|
An investment under consideration has a payback of six years and a cost of $872,000. Assume the cash flows are conventional. |
| If the required return is 12 percent, what is the worst-case NPV? (Negative amount should be indicated by a minus sign.Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) |
| Â Â Worst-case NPV | $Â Â Â |
Problem 5-6 Calculating IRR
|
Compute the internal rate of return for the cash flows of the following two projects (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16)): |
| Year | Project A | Project B | ||
|   0 | Ac€?o$ | 12,800 | Ac€?o$ | 10,400  |
| Â Â 1 | Â | 5,000 | Â | 2,700Â Â |
| Â Â 2 | Â | 5,800 | Â | 7,700Â Â |
| Â Â 3 | Â | 4,600 | Â | 4,200Â Â |
| Â | Internal rate of return | |
| Â Â Project A | % | |
| Â Â Project B | % | |
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