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CAPITAL BUDGETING

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A project has an initial cost of $65,000, expected cash flows of $14,000 per year for 9 years and a cost of capital of 11%. Answer the following:

a. What is the IRR?

b. What is the payback period?

c. What is the NPV?

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Solution Summary

USING EXCEL FORMULAS CALCULATE THE IRR, NPV, PAYBACK PERIOD:

A project has an initial cost of $65,000, expected cash flows of $14,000 per year for 9 years and a cost of capital of 11%. Answer the following:

a. What is the IRR?

b. What is the payback period?

c. What is the NPV?

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