Explore BrainMass
Share

Explore BrainMass

  1. Business
  2. Finance
  3. 564341

Calculating NPV and IRR parameters in the given case

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%.

© BrainMass Inc. brainmass.com June 19, 2018, 1:03 am ad1c9bdddf

Solution Summary

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

$2.19

Related BrainMass Content

Captial Budgeting Case

... The solution explains how to calculate the projected income statement ... and to use
it to calculate the payback ... f. Calculating IRR Increase the factor since NPV ...

Case 12 - Dilemma at Day-Pro

... The IRR calculated is higher than what it would be ... In NPV, the intermediate cash
flows are assumed to be ... 7. Calculate the Profitability Index for each proposal ...

Capital Budgeting and Forecasting Models

... Calculate the machine's net present value using a discount rate of 10 ... depicts the
steps to calculate the payback period, IRR and NPV parameters for the ...

Calculating NPVs and IRRs of given projects

Calculating NPVs and IRRs of Given Projects. ... 2. Now we calculate IRR for both projects ...
NPV and IRR are two important capital budgeting parameters and help us in ...