1.27 Some more NPV and IRR Practice Problems
Problem #1:
Cost = $61,446
Cash Flow = $10,000 per year
N = 10 Years
NPV @ 5% discount rate = ?
Possible Range for IRR:
IRR = ?
Problem #2:
Cost = $1.5 million
Project Life = 5 Years
k = 3%
CF1 = $725,000
CF2 = $830,000
CF3 = $840,000
CF4 = $625,000
CF5 = $225,000
Salvage Value = $35,000
Calculate the NPV!
