A project has the following cash flows: Year Cash Flow 0 $ 45,500 1 2 - 24,500 35,500 What is the IRR for this project? (Round the final answer to 2 decimal places.) IRR % What is the NPV of this project, if the required return is 12%? (Negative answer should be indicated by a minus sign. Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.) NPV $ What is the NPV of the project if the required return is 0%? (Negative answer should be indicated by a minus sign. Omit $ sign in your response.) NPV $ SA What is the NPV of the project if the required return is 24%? (Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.) NPV $ SA

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

pr.2

 

A project has the following cash flows:
Year
Cash Flow
0
$ 45,500
1
2
-
24,500
35,500
What is the IRR for this project? (Round the final answer to 2 decimal places.)
IRR
%
What is the NPV of this project, if the required return is 12%? (Negative answer should be indicated by a minus sign. Do not round
intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.)
NPV
$
What is the NPV of the project if the required return is 0%? (Negative answer should be indicated by a minus sign. Omit $ sign in
your response.)
NPV
$
SA
What is the NPV of the project if the required return is 24%? (Do not round intermediate calculations. Round the final answer to 2
decimal places. Omit $ sign in your response.)
NPV
$
SA
Transcribed Image Text:A project has the following cash flows: Year Cash Flow 0 $ 45,500 1 2 - 24,500 35,500 What is the IRR for this project? (Round the final answer to 2 decimal places.) IRR % What is the NPV of this project, if the required return is 12%? (Negative answer should be indicated by a minus sign. Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.) NPV $ What is the NPV of the project if the required return is 0%? (Negative answer should be indicated by a minus sign. Omit $ sign in your response.) NPV $ SA What is the NPV of the project if the required return is 24%? (Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.) NPV $ SA
Expert Solution
steps

Step by step

Solved in 2 steps with 1 images

Blurred answer
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education