Net Cash Flows and NPVs for different discount rate for projects S and L are given below     Net Cash Flows ($)   Discount Rate (%) NPVS NPVL Year (t) Project S Project L   0% $800 $1100 0 $(3000) $(3000)   5   554.32 1 1500 400   10 161.33   2 1200 900   15 (90.74) (259.24) 3 800 1300   20 (309.03) (565.97) 4 300 1500         ii) NPVS at 10%:     d) What is the IRR for S? (Write down the equation for IRR and then Use an excel worksheet to calculate IRR

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Net Cash Flows and NPVs for different discount rate for projects S and L are given below

 

 

Net Cash Flows ($)

 

Discount Rate (%)

NPVS

NPVL

Year (t)

Project S

Project L

 

0%

$800

$1100

0

$(3000)

$(3000)

 

5

 

554.32

1

1500

400

 

10

161.33

 

2

1200

900

 

15

(90.74)

(259.24)

3

800

1300

 

20

(309.03)

(565.97)

4

300

1500

 

 

 

 

  1. ii) NPVS at 10%:

 

 

  1. d) What is the IRR for S? (Write down the equation for IRR and then Use an excel worksheet to calculate IRR 

Equation:

 

Answer:

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