Share
Explore BrainMass

NPV, Payback Period and IRR

I need help calculating Net present value, IRR and the payback period:

You are the finance manager for Smith & Comapny and you must decide among three projects. The CFO set the required rate of return at 12%.
? Project A has the following characteristics: $100,000 initial cash outflow, five years of $21,500 payments, and a salvage value of $42,525 at the end of year five.
? Project B has the following characteristics: $25,640 initial cash outflow, five years of $5,524 payments, and a salvage value of $13,513 at the end of year five.
? Project C has the following characteristics: $75,050 initial cash outflow, four years of $23,510 payments, and no salvage value.

Complete the following table

Payback Period / IRR / Net Present Value

Project A
Project B
Project C

Solution Summary

The solution explains how to calculate the NPV, Payback Period and IRR for the given projects

$2.19