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NET PRESENT VALUE and internal rate of return FOR CAPITAL

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I HAVE A PROJECT WITH THE FOLLOWING EXPECTED CASH FLOWS

Year Cash Flow
0 -\$550,000.00
1 \$90,000.00
2 \$100,000.00
3 \$470,00.00

If I have the following discount rates what is the project's net present value and IRR?

0% THIS IS WHAT I DON"T KNOW

I figured out the NPV for the rest but are they correct?I used a NPV calculator but I really don't know the formula and it wouldn't do zero. What is this project's internal rate of return?

4% NPV would be \$46,822.37 8% NPV would be -\$7,831.63 10% NPV would be --\$32,419.23

Solution Preview

I HAVE A PROJECT WITH THE FOLLOWING EXPECTED CASH FLOWS

Year Cash Flow
0 -\$550,000.00
1 \$90,000.00
2 \$100,000.00
3 \$470,00.00

If I have the following discount rates what is the project's net present value and IRR?

0% THIS IS WHAT I DON"T KNOW

I figured out the NPV for the rest but are they correct? I used a NPV calculator but I really don't know the formula and it wouldn't do zero. What is this project's internal rate of return?

You calculate correctly. For NPV calculator, I'm not sure if you mean financial calculator or not, but if you will use 0%, you only input interest as 0% and enter. You can ...

Solution Summary

This solution is comprised of a detailed explanation to calculate NPV at different interest rate.

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