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  • NPV, Irr

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    Hamza Husnain
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    This document contains the results of a cash flow analysis of an investment project including the net present value (NPV), internal rate of return (IRR), and payback period. The NPV is $297,076.74, the IRR is 24%, and the payback period is 1.8 years. It also shows the calculations and results for a second project with an NPV of negative $2,140.30, an IRR of 10%, and a payback period of 3 years and 3 months. Criteria for accepting projects based on these metrics are also stated.

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    NPV,IRR

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    This document contains the results of a cash flow analysis of an investment project including the net present value (NPV), internal rate of return (IRR), and payback period. The NPV is $297,076.74, the IRR is 24%, and the payback period is 1.8 years. It also shows the calculations and results for a second project with an NPV of negative $2,140.30, an IRR of 10%, and a payback period of 3 years and 3 months. Criteria for accepting projects based on these metrics are also stated.

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    Download as xlsx, pdf, or txt
    3 views3 pages

    NPV, Irr

    Uploaded by

    Hamza Husnain
    This document contains the results of a cash flow analysis of an investment project including the net present value (NPV), internal rate of return (IRR), and payback period. The NPV is $297,076.74, the IRR is 24%, and the payback period is 1.8 years. It also shows the calculations and results for a second project with an NPV of negative $2,140.30, an IRR of 10%, and a payback period of 3 years and 3 months. Criteria for accepting projects based on these metrics are also stated.

    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 3

    n cash inflow rate 7%

    0 -1000000
    1 500000
    2 600000
    3 400000

    NPV $297,076.74 $297,076.74


    IRR 24% 24%

    Payback Period

    n CF Remaining
    0 -1000000
    1 500000 -500000
    2 600000 100000
    3 400000

    Payback Peiod 1.833333333 1.833333


    Payback period
    N CF remaining rate 11%
    0 -200000
    1 50000 -150000
    2 60000 -90000
    3 70000 -20000 PBP accept if the value is less than sta
    4 80000 60000 NPV accept if npv is positive
    IRR accept if return is greater than co
    3.25
    3
    payback period 3 year &3 months

    npv ($2,140.30)
    irr 10%
    the value is less than standard
    npv is positive
    return is greater than cost

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