Explore BrainMass
Share

Explore BrainMass

    IRR calculations and NPV

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Make a spreadsheet document that contains the IRR calculations.

    Clearly label each diagram to identify the investment name and type of asset
    Show the original equation you are using
    Clearly identify a value for each variable in the equation

    Then, in a Microsoft Word document, prepare a summary report (300 words or less) that includes the following:

    The NPVs of the four potential investments, ranked from most profitable to least profitable. I have the NPV's done ...please see excel spreadsheet.

    The IRRs of the four potential investments, ranked from most profitable to least profitable
    Your recommendation for the single most profitable investment and a justification of that choice

    © BrainMass Inc. brainmass.com October 9, 2019, 8:08 pm ad1c9bdddf
    https://brainmass.com/business/net-present-value/irr-calculations-npv-140729

    Attachments

    Solution Preview

    BLUE MESA SUMMARY REPORT

    The four projects Sagebrush, Longhorn, Big Crick and Dusty Basin are ranked based on NPV as below:
    Rank 1: Big Crick-NPV=$125 million
    Rank2: Longhorn-NPV=$51.88 million
    Rank3: Sagebrush - NPV=$26.63 million
    Rank 4: Dusty Basin - NPV=$20.34 million
    The higher the value of the NPV the better the project is.

    The ranking of the four projects based on IRR is as below:
    Rank 1: Longhorn - IRR=22.15%
    Rank2: Big Crick ...

    Solution Summary

    IRR calculations and NPV are examined.

    $2.19