Assignment Scenario: Over lunch, you and Mary meet to discuss next steps with the expansion project. “Do we have everything we need on sales and costs?” you ask. ”It must be time to compute the net present value (NPV) and internal rate of return (IRR) o
Michelle_Michy20180501003455finc615_npv_irr_ip_4.xls
NPV - IRR
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| FIN 615 |
| NPV and IRR calculations |
| Cost of Capital | 10.00% |
| Time/yr | 0 | 1 | 2 | 3 | 4 | 5 |
| Cash flow Input here |
| Discounted CF | 0 | 0 | 0 | 0 | 0 | 0 |
| NPV | 0 | =cf1/((1+n)^1) | =cf2/((1+n)^2) | =cf3/((1+n)^3) | =cf4/((1+n)^4) | =cf5/((1+n)^5) |
| PV factor | | 0.9090909091 | 0.826446281 | 0.7513148009 | 0.6830134554 | 0.6209213231 |
| IRR | 0.00% |