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    Calculate each plan's NPV and IRR

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    ) Threadnot, Inc.'s President wants to see the NPV and IRR of each of the above plans. The appropriate discount rate is 20%. Calculate each plan's NPV and IRR.

    Year 0 1 2 3
    Plan a $-8000 $8,000 $700 $700
    plan b $-8000 $900 $900 $10000

    © BrainMass Inc. brainmass.com June 3, 2020, 8:23 pm ad1c9bdddf

    Solution Preview

    We compute PV for each cash flow by
    PV(t) = CF(t) / (1+20%)^t

    Plan a PV for a ...

    Solution Summary

    The solution calculates each plan's NPV and IRR.