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_Michy
20180501003455finc615_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% |