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Calculating NPV and IRR parameters in the given case

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Using a spreadsheet program like Excel, calculate the NPV and IRR of the following scenario:

Cost (Year 0): 10,000.
Year 1 Return: 3,000.
Year 2 Return: 3,000.
Year 3 Return: 5,000.
Discount Rate: 10%.

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Solution Summary

Solution depicts the steps to calculate NPV and IRR parameters by using built-in functions in MS Excel.

Solution provided by:
Lokesh Jain, MSc
Education
  • BEng (Hons) , Birla Institute of Technology and Science, India
  • MSc (Hons) , Birla Institute of Technology and Science, India
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