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FIN - Calculate the investments IRR and NPV

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Question

Question;The following information is available about an investment opportunity. Investments will occur at time 0 and will commence at time 1.Initial cost-28 millionUnit Sales-400,000Selling price per unit, this year-$60.00Variable cost per year, this year-$42.00Life expectancy-8 yearsSalvage value-0Depreciation-straight linetax rate-37%nominal discount rate-10%real discount rate-10%inflation rate-0%1) prepare a spreadsheet to estimate the projects annual after tax cash flows2) calculate the investments IRR and NPV

 

Paper#49088 | Written in 18-Jul-2015

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