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Finding NPV and IRR

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Finding NPV and IRR
Kennesaw Instrument Company is looking at six projects
with the following cash flows (investment outlays are negative cash flows):
The cost of capital for all of the projects is 11%

A) Calculate the Payback period for the six projects (round off to closest year)

B) Calculate the NPV for the six projects.

C) Calculate the IRR for the six projects.

D) Calculate the MIRR for the six projects.

E) Which project would you choose and based on which criterion?

Cash flow in Millions
Time 0 1 2 3 4 5 6 7 8 Year
Project A -10 2 3 4 5 4 3 2 1
Project B -9 -3 5 5 5 2 0 0 0
Project C -47 25 20 15 5 0 0 0 0
Project D -1 2 2 2 0 0 0 0 0
Project E -30 6 6 6 6 6 6 0 0
Project F -10 -20 5 5 8 8 8 8 8

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Solution Summary

The expert finds the NPVA and the IRR.

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