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Investment appraisal

FFlorence3y ago
The following spread sheet shows an evaluation of project B. All cash flows occur at the end if the relevant year, apart from the initial investment which occurs immediately. A B C D E F G Description Year Cashflow ($) -30,000 12,000 12,000 7,000 7,000 6,000 Cumulative cashflow ($) -30,000 -18,000 -6,000 1,000 8,000 14,000 Present value factor at 10% per year 1 0.909 0.826 0.751 0.683 0.621 Present value at 10% per year ($) -30,000 10,908 9,912 5,257 4,781 3,726 4,584 Cumulative Present value at 10% per year ($) -30,000 -19,092 -9,180 -3,923 858 4,584 1 2 3 4 5 6 Initial Investment 1 7 Operating cashflow 1 8 Operating cashflow 2 9 Operating cashflow 3 10 Operating cashflow 4 11 Operating cashflow 5 12 Net present value 4584(a) What is the discounted payback period of project B (to the nearest whole number)?...................years (b) What is the internal rate of return (IRR) of the project (to the nearest whole number) ........% Task 3 If project Help me with this number
John MoffatJohn MoffatTutor3y ago#1
We do not provide full answers to full questions!! You must have an answer in the same book in which you found the question, so ask about whatever it is in the answer that you are not clear about and then I will explain. If you do not have an answer because you were given the question as 'homework' then obviously we do not do your homework for you. However everything needed to be able to answer this question is explained in our free lectures. The lectures are a complete free course for Paper MA and cover everything needed to be able to pass the exam well.
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