Suppose your company wants to place an investment with a private equity firm with an amount of Php 200,000 for 2021. Considering all the risks involved, the prevailing  discount rate is 12%  and with a revenue stream/dividends  below. Should the company invest? Why or why not? Year  Cash flow  2022              5,000.00 2023              6,000.00 2024              7,000.00 2025              8,000.00 2026              9,000.00 2027             10,000.00 2028             11,000.00   Determine the following:   a. NPV for the period 2022 through 2028; b. Total NPV using manual computation; c. Total NPV using the Excel function; and d. IRR rate.

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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Suppose your company wants to place an investment with a private equity firm with an amount of Php 200,000 for 2021. Considering all the risks involved, the prevailing  discount rate is 12%  and with a revenue stream/dividends  below. Should the company invest? Why or why not?

Year  Cash flow 
2022              5,000.00
2023              6,000.00
2024              7,000.00
2025              8,000.00
2026              9,000.00
2027             10,000.00
2028             11,000.00

 

Determine the following:  
a. NPV for the period 2022 through 2028;
b. Total NPV using manual computation;
c. Total NPV using the Excel function; and
d. IRR rate.  
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