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    NPV, IRR and payback for the project

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    Calculate NPV, IRR and payback for the project and then a brief summary about whether or not it should be a project or - should losses be cut and everyone move on.

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    See the attached file.

    1. Calculate the NPV, IRR, and payback for the project.

    Cash flow = Profit After Tax + Depreciation (this total gives the operating cash flows) less the capital expenditure.
    The capital expenditure also has the working capital changes and so no further adjustment for working capital is needed.
    The amount already spent of $873 million is a sunk cost and is not relevant.

    NPV is calculated by ...

    Solution Summary

    The solution explains how to calculate the NPV, IRR and payback for the project.