If there is a way to do this on a financial calculator pleas

If there is a way to do this on a financial calculator, please show how to do that! Thanks!

Part A)

You have the following information on a project\'s cash flows. The cost of capital is 11.2%

Year

Cash flows

0

-$118,000

1

23,000

2

23,000

3

37,000

4

32,000

5

51,000

The NPV of the project is $____. Round to two decimal places.

Your Answer:

Part B)

You have the following information on a project\'s cash flows.

Year

Cash flows

0

-$115,000

1

24,000

2

31,000

3

30,000

4

59,000

5

55,000

The project\'s payback is ____ years. Round it to two decimal places.

Your Answer:

Solution

Answer to Part A:

Using financial calculator:

I/Y = 11.2%

CF0 = -118000
CF1 = 23000
CF2 = 23000
CF3 = 37000
CF4 = 32000
CF5 = 51000

PV = -848.98

So, NPV of the project is -$848.98

Answer to Part B:

Initial Outflow = $115,000

Cost recovered in 3 years = $85,000 ($24,000 + $31,000 + $30,000)

Remaining Cost to be recovered = $30,000 ($115,000 - $85,000)

Payback Period = 3 + $30,000/$59,000
Payback Period = 3.51

The project’s payback is 3.51 years.