For Ann Harris
Bapestar1
unit_3ipassignment_worksheetformat.xlsSheet1
| NPV | Cost of Capital | Cash Flows | |||||
| Years | Amount of | Rate | Present Value | Investment | |||
| Cash Flow | of Cash Flows | Cash Inflows for 10 Yrs | |||||
| Annual cost savings | 10 | $500,000 | 14% | ||||
| Initial Investment | ($2,000,000) | ($2,000,000) | |||||
| NPV= | |||||||
| IRR | |||||||
| Investment Required | 2,000,000 | ||||||
| Net annual cash inflow | 10 | 500,000 | IRR= | ||||
| Payback Period | Payback = | ||||||
| Investment Required | 2,000,000 | ||||||
| Net annual cash inflow | 500,000 |
