# Calculating NPV and IRR of cash flows

Consider the project with the following expected cash flows:

Year Cash flow

0 - $500,000

1 $100,000

2 $110,000

3 $550,000

?If the discount rate is 0%, what is the project's net present value?

?If the discount rate is 4%, what is the project's net present value?

?If the discount rate is 8%, what is the project's net present value?

?If the discount rate is 10%, what is the project's net present value?

?What is this project's internal rate of return?

https://brainmass.com/business/internal-rate-of-return/calculating-npv-irr-cash-flows-201878

#### Solution Preview

Please refer attached file for better clarity of tables and complete formulas.

Solution :

Present Value = Future ...

#### Solution Summary

Solution describes the steps in finding out Net Present Value of given cash flows related to a project at various discount rates. It also explains the method to get IRR for these cash flows.