Week Six Assignment Below, I am including the projected cash flows for a long term capital project.
Caiden
deniz---wk6---week-excel-sheet-supporting-audio.xlsx
NPV
| | | | Rate | 15% | | Alternative Method |
| | | | | | | PV | PV |
| | | | Year | Cash Flows | | Factors | Cash Flows |
| | | | 0 | -$30,000 | | 1.0000 | -$30,000 |
| | | | 1 | $6,000 | | 0.8696 | $5,217 |
| | | | 2 | $6,000 | | 0.7561 | $4,537 |
| | | | 3 | $6,000 | | 0.6575 | $3,945 |
| | | | 4 | $6,000 | | 0.5718 | $3,431 |
| | | | 5 | $6,000 | | 0.4972 | $2,983 |
| | | | 6 | $6,000 | | 0.4323 | $2,594 |
| | | | 7 | $6,000 | | 0.3759 | $2,256 |
| | | | 8 | $8,000 | | 0.3269 | $2,615 |
| | | Net Present Value--> | | ($2,422.27) | | | -$2,422 |
| | | Internal Rate of Return | | 12.6% |