Duron Company is considering a project requiring $1 million initial investment.
Expected cash inflows will be:
? $25,000 in the first year
? $100,000 in the second year
? $200,000 per year for the next six years.
a. Calculate the project's IRR and the NPV assuming an 8% cost of capitol.
b. How much would each of the last six payments have to be to make the project's NPV $100,000?© BrainMass Inc. brainmass.com June 3, 2020, 10:12 pm ad1c9bdddf
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Year Cash Flow PV factor@8% PV of cash ...
This solution is comprised of questions from IRR and NPV.