Homework SourseA project has the following cash flows SolutionIRR is rate a
| A project has the following cash flows: |
Solution
IRR is rate at which NPV is o
At 13.538%, NPV comes to 0, Hence IRR is 13.58%
B) NPV when interest rate is 8.5%
C) NPV when Interest rate is 0%
D) NPV when interest rate is 17%
| Year | Cash flow | PVIF @ 13.583% | Present value |
| 0 | 64700 | 1 | 64700.00 |
| 1 | -30700 | 0.880 | -27028.69 |
| 2 | -48600 | 0.775 | -37671.21 |
| NPV | 0 |
