Google Answers: NVP/IRR

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Q: NVP/IRR ( Answered, 0 Comments )

Question

Subject: NVP/IRR
Category: Business and Money > Accounting
Asked by: buffcode-ga
List Price: $5.00

Posted: 03 Jun 2005 10:47 PDT
Expires: 03 Jul 2005 10:47 PDT
Question ID: 528987

NPV/IRR.
a. Calculate the net present value of the following project for
discount rates of 0, 50, and 100 percent:
   C0             C1              C2
?$6,750         +$4,500       +$18,000
b. What is the IRR of the project?

Answer

Subject: Re: NVP/IRR
Answered By: wonko-ga on 03 Jun 2005 11:33 PDT

$15,750.00 	$2,833.33 	$0.00 

IRR is 100% since NPV at 100% is 0.  Confirmed by IRR formula.

Source: "Go with the cash flow: Calculate NPV and IRR in Excel"
Microsoft Corporation (2005)
http://office.microsoft.com/en-us/assistance/HA011136321033.aspx

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