CALCULATING PAYBACK, IRR AND NPV

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May 25, 2016 at 8:38 am #316964
kelly2010
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How do i calculate NPV,IRR and Payback if a company invests $65000. Cash-flows are $55000 in year 1, $66000 in year 2 and $63000 in year 3.
The company’s cost of capital is 12%
May 25, 2016 at 9:55 am #316994
John Moffat
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None of these are in the syllabus for Paper F5!

They are examined in Paper F2 and Paper F9. If you are taking F2 then watch the free lectures on investment appraisal, where they are explained in detail. I am not going to type out the free lectures here 🙂

Our free lectures for Papers F2, F5 and F9 are complete courses for each of the papers, and cover everything needed to be able to pass the exams well.
May 25, 2016 at 10:22 am #317005
kelly2010
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Thank you for your response. Will check the notes
May 25, 2016 at 11:50 am #317027
John Moffat
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You are welcome 🙂

(But do not use the notes on their own – they are lectures notes to be used with the lectures, because it is in the lectures that we explain and expand on the notes.)
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