NPV/IRR. Growth Enterprises believes its latest project, which will cost $80,000 to install, will generate a perpetual growing stream of cash ﬂows. Cash ﬂow at the end of this year will be $5,000, and cash ﬂows in future years are expected to grow indeﬁnitely at an annual rate of 5 percent. a. If the discount rate for this project is 10 percent, what is the project NPV? b. What is the project IRR?

Please show excel sheet and formulas. I had OTA 102799 help me with this but did not get the formula or excel. Original answer for NPV was $20,000 - not sure if this is correct or not?

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We can find the NPV in 2 ways: 1 way is through Excel formulae (see the attached sheet). The other and more rigorous way ...

A project has annual cash flows of $7500 for the next 10 years and then $10,000 each year for the following 10 years. The IRR of this 20-years project is 10.98%. if the firm's WACC is 9%, what is the project's NPV?

Which of the following statements is incorrect?
a. Assuming a project has normal cash flows, the NPV will be positive if the IRR is less than the cost of capital.
b. If the multiple IRR problem does not exist, any independent project acceptable by the NPV method will also be acceptable by the IRR method.
c. If IRR = k

Question -For independent projects, is it true that if PI>0, then NPV>0, and IRR>K?
Is my answer correct?
PI= (I+NPV) / I where I=Investment
if PI>0 then {(I+NPV) / I}>0 which means NPV> -I meaning NPV>0 where <0>
is the limit of I
NPV=0={C1 / (1+IRR)}-I={C1 / (1+k)}-I where C1 is the expected future net
cash flo

Please help figuring this problem out. Please show all formulas.
Project c0 c1 c2 c3
A -$20,000 +$8,000 +$8,000 +$8,000
B _$20,000 0 0 +$25,000.
a. At what interest rates would you prefer project

I have an excel spreadsheet where certain areas have been left blank and need to be computed in order to complete a research paper. However, I'm not sure how to do the calculations correctly. Please help. The areas highlighted in YELLOW need to be calculated. Thank you.

Look at the net present value (NPV) equation (11-1) in your text Fundamentals of Financial Management and the cash flow time line below the formula. In your own words, explain each term of the NPV equation. Explain how you would arrive at the discounted cash flows for each year represented within the time line. How does this cal

) 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

A. Calculate the NPV and IRR for each project. The company's WACC is 10%.
b. Assume only one percent can be undertakeen. Which project would you recommend and why would you?

The projected cash flows for two mutually exclusive projects are as follows:
Year Project A Project B
0 ($150,000) ($150,000)
1 0 50,000
2 0 50,000
3 0 50,000
4 0 50,000
5 250,000