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A project has the following cash flows: Year Cash Flow 0 $ 41,500 1 - 20,500 2 -

ID: 2633591 • Letter: A

Question

A project has the following cash flows:

Year Cash Flow

0 $ 41,500

1 - 20,500

2 - 31,500

What is the IRR for this project?

What is the NPV of this project, if the required return is 11 percent? (Negative amount should be indicated by a minus sign. Do not round intermediate answers and round your final answer to 2 decimal places. (e.g., 32.16))

What is the NPV of the project if the required return is 0 percent? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations.)

What is the NPV of the project if the required return is 22 percent? (Do not round intermediate answers and round your final answer to 2 decimal places. (e.g., 32.16))

What is the NPV of this project, if the required return is 11 percent? (Negative amount should be indicated by a minus sign. Do not round intermediate answers and round your final answer to 2 decimal places. (e.g., 32.16))

What is the NPV of the project if the required return is 0 percent? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations.)

What is the NPV of the project if the required return is 22 percent? (Do not round intermediate answers and round your final answer to 2 decimal places. (e.g., 32.16))

Explanation / Answer

NPV of this project, if the required return is 11 percent:

NPV of the project if the required return is 0 percent:

NPV of the project if the required return is 22 percent:

year cashflows 0 41500 1 -20500 2 -31500 IRR 15.25%