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

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20180501003455finc615_npv_irr_ip_4.xls

NPV - IRR

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%

Sheet3