Problem 1 Suppose your company wants to place an investment with a private equity firm with an amount of Php 200,000 for 2021. Considering all the risks involved, the prevailing discount rate is 12% and with a revenue stream/dividends below. Should the company invest? Why or why not? so00 6000 2022 2023 2024 7000 2025 8000 2026 9000 10000 11000 2027 2028 Determine the following a. NPV for the period 2022 through 2028; b. Total NPV using manual computation; e. Total NPV using the Excel function; and d. IRR rate

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Problem 1
Suppose your company wants to place an investment with a private equity firm with an amount of Php 200,000 for 2021. Considering all the risks involved, the prevailing discount rate is 12% and with a revenue stream/dividends below. Should the company invest? Why or why not?
2022
5000
2023
6000
2024
7000
2025
8000
2026
9000
2027
10000
2028
11000
Determine the following:
a. NPV for the period 2022 through 2028;
b. Total NPV using manual computation;
c. Total NPV using the Excel function; and
d. IRR rate.
Transcribed Image Text:Problem 1 Suppose your company wants to place an investment with a private equity firm with an amount of Php 200,000 for 2021. Considering all the risks involved, the prevailing discount rate is 12% and with a revenue stream/dividends below. Should the company invest? Why or why not? 2022 5000 2023 6000 2024 7000 2025 8000 2026 9000 2027 10000 2028 11000 Determine the following: a. NPV for the period 2022 through 2028; b. Total NPV using manual computation; c. Total NPV using the Excel function; and d. IRR rate.
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