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    NPV, Payback Period and IRR

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    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

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    https://brainmass.com/business/capital-budgeting/npv-payback-period-irr-154872

    Solution Summary

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

    $2.19

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