Advertisement
NET PRESENT VALUE and INTERNAL RATE OF RETURN
* see getting started
19 & 20. What is the Net Present Value and IRR of this project?
A project has the following cash flows
Year
Cash Flow (R)
0
‐1,000
1
‐1,700
2
1,500
3
1,800
4
1,900
If the weighted average cost of capital WACC is 15 %
what is the Net Present Value of this project?
What is the Internal Rate of Return of the
above cash flows?
Colin C Smith 2010
HP10BII financial calculator
KEYS
CLEAR ALL
1 P/YR
1,000 +/‐ CFj
1,700 +/‐CFj
1,500 CFj
1,800 CFj
1,900 CFj
15 I/YR
NPV
IRR/ YR
DISPLAY
*Must not display BEGIN
0.00
1.00
‐1,000.00
‐1,700.00
1,500.00
1,800.00
1,900.00
15.00
925.812
31.54
11
Advertisement
