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  • Cash in Flow 10000 Expected Life 5 Cost Capital 12 Initial Cost 10000

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    2neel8
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    The document presents the results of a net present value (NPV) analysis for a potential project with an initial cost of $10,000 and expected cash inflows over 5 years. The NPV is calculated to be $26,047.76 using a cost of capital of 12%, indicating the project should be accepted. Alternative calculations of internal rate of return show an IRR of 8.51823%, also recommending the project be accepted based on exceeding the cost of capital.

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    npv and irr

    Original Title

    npv and irr

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    The document presents the results of a net present value (NPV) analysis for a potential project with an initial cost of $10,000 and expected cash inflows over 5 years. The NPV is calculated to be $26,047.76 using a cost of capital of 12%, indicating the project should be accepted. Alternative calculations of internal rate of return show an IRR of 8.51823%, also recommending the project be accepted based on exceeding the cost of capital.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    10 views4 pages

    Cash in Flow 10000 Expected Life 5 Cost Capital 12 Initial Cost 10000

    Uploaded by

    2neel8
    The document presents the results of a net present value (NPV) analysis for a potential project with an initial cost of $10,000 and expected cash inflows over 5 years. The NPV is calculated to be $26,047.76 using a cost of capital of 12%, indicating the project should be accepted. Alternative calculations of internal rate of return show an IRR of 8.51823%, also recommending the project be accepted based on exceeding the cost of capital.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    of 4

    cash in flow 10000

    expected life 5
    cost capital 12
    initial cost 10000

    NPV 26047.76

    decision Project should be accepted


    Project should be accepted
    Expected Cash Flow
    Investment Cost 10000 1
    Period 2 2
    3
    4
    1st percentage r1 6 5
    2nd percentage r2(>r1) 7 6
    7
    8
    NVP of r1 996.7759 9
    NVP of r2 600.9519 10

    IRR 8.51823

    decision The project should be accepted


    Expected Cash Flow
    151
    526
    5494
    1000
    6666

    ould be accepted

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