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    Calculating NPV and IRR of cash flows

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    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?

    © BrainMass Inc. brainmass.com October 9, 2019, 9:55 pm ad1c9bdddf
    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.

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