Initial investment 1 D 1 2 3 4 5 NPV 6 7 IRR 123 2 4 5 (180,000) 60,000 40,000 70,000 125,000 35,000
Initial investment 1 D 1 2 3 4 5 NPV 6 7 IRR 123 2 4 5 (180,000) 60,000 40,000 70,000 125,000 35,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
1 Moore is considering a $180,000 investment with the following net

Transcribed Image Text:1
Moore is considering a $180,000 investment with the following net cash flows.
Moore requires a 10% return on its investments. Calculate the NPV and IRR
below. In the dropdown box, select whether each indicates whether Moore
should accept the investment.
2
3
Year
4 Initial investment
5
1
6
7
8
9
10
11
12
13
14
15 NPV
16
17 IRR
18
19
20
234N
5
Net Cash Flows
(180,000)
60,000
40,000
70,000
125,000
35,000
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