A project is being evaluated. The project will create the following cash flows: Year Cash Flow 0 $ 1,290,000 1 465,000 2 530,000 3 425,000 4 380,000 In an attempt to improve its economy, the Erewhonian government has declared that all cash flows created by a foreign company are blocked and must be reinvested with the government for one year. The reinvestment rate for these funds is 3 percent. If Anderson uses a required return of 12 percent on this project, what are the NPV and IRR of the project? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Enter your IRR as a percent.) Whats is the NPV and IRR of the project of the project?
Please use excel to solve and show equations.
A project is being evaluated. The project will create the following cash flows:
| Year | Cash Flow |
|---|---|
| 0 | $ 1,290,000 |
| 1 | 465,000 |
| 2 | 530,000 |
| 3 | 425,000 |
| 4 | 380,000 |
In an attempt to improve its economy, the Erewhonian government has declared that all cash flows created by a foreign company are blocked and must be reinvested with the government for one year. The reinvestment rate for these funds is 3 percent. If Anderson uses a required return of 12 percent on this project, what are the NPV and IRR of the project? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Enter your IRR as a percent.)
Whats is the NPV and IRR of the project of the project?
Please use excel to solve and show equations.
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