Given the following unconventional cash flows, find: Time, t Cash flow, CFt, $m 0 -1 1 2 3 4 5 6.12 -14.9435 18.1973 -11.051265 2.677675 i. The number of IRR's (cite which theorem you use to arrive at your answer) ii. Prove your answer in part i by plotting the NPV profile in the domain of 0% through 50%. To accentuate the peak and trough, you may have to adjust the domain accordingly in plotting the NPV profile. iii. Use the Solver function within Excel to find the discount rate at which the NPV is maximized. Restrict your search between 10% and 25%. Answer: Question No. of IRR's for the given cash flows series (an integer) Discount rate for maximum NPV is at % (2 decimals) List all the IRR's (from small to large, in %) (2 decimals) Answer

Given the following unconventional cash flows, find: Time, t Cash flow, CFt, $m 0 -1 1 2 3 4 5 6.12 -14.9435 18.1973 -11.051265 2.677675 i. The number of IRR's (cite which theorem you use to arrive at your answer) ii. Prove your answer in part i by plotting the NPV profile in the domain of 0% through 50%. To accentuate the peak and trough, you may have to adjust the domain accordingly in plotting the NPV profile. iii. Use the Solver function within Excel to find the discount rate at which the NPV is maximized. Restrict your search between 10% and 25%. Answer: Question No. of IRR's for the given cash flows series (an integer) Discount rate for maximum NPV is at % (2 decimals) List all the IRR's (from small to large, in %) (2 decimals) Answer

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 13MC: Which of the following discounts future cash flows to their present value at the expected rate of...

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