Using a spreadsheet program like Excel, calculate the NPV and IRR of the following scenario: Cost (Year 0): 10,000. Year 1 Return: 3,000. Year 2 Return: 3,000. Year 3 Return: 5,000. Discount Rate: 10%.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 16EB: Project Y cost $8,000 and will generate net cash inflows of $1,500 in year one, $2,000 in year two,...
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Using a spreadsheet program like Excel, calculate the NPV and IRR of the following scenario:

  • Cost (Year 0): 10,000.
  • Year 1 Return: 3,000.
  • Year 2 Return: 3,000.
  • Year 3 Return: 5,000.
  • Discount Rate: 10%.
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