Denver enters a project which requires an initial cash outlay of 100 and an invest- ment of 150 at the end of year 1, and is expected to generate him 300 at the end of year 2, at which time the project will terminate. a. Calculate the internal rate of return of the project. b. Calculate the net present value of the cash flows given that $₁ $2 = 5.5%. c. Calculate the net present value of the cash flows given that fi f2 = 5.5%. = 4% and = 4% and

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Cash Flow Statement Analysis

A company's cash flow is the movement of its cash inflows and cash outflows. A cash flow statement is prepared to determine changes in an organization's cash position. A cash flow statement shows how much money was generated and spent on the business during the fiscal year. The cash flow analysis is a method of analyzing an organization's investing, financing, and operating activities. A cash flow statement reveals an organization's liquidity and solvency, as well as its ability to change cash flows in the future. It eliminates the other effects of accounting methods by improving the comparability of different organizations' operational performance.