Find what are the npv and irr of the project

Reference no: EM131933065

Question: Anderson International Limited is evaluating a project in Erewhon. 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 All cash flows will occur in Erewhon and are expressed in dollars. 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.)

Reference no: EM131933065

Questions Cloud

How much of the inspecting cost pool should be assigned : One of Matheny Company's activity cost pools is inspecting, with estimated overhead. How much of the inspecting cost pool should be assigned to throw rugs?

Find the size of the quarterly payment : Payments may be made quarterly in advance with interest at 6% compounded quarterly. Find the size of the quarterly payment.

Explain the porters 5 competitive forces : Porter's 5 Competitive Forces, what do you believe is a limitation to only evaluating those competitive forces for that selected industry/company.

Semiannual interest payments : Now assume the same bond as above but with semiannual interest payments. What is the value or (PV) or (Vb) of the bond.

Find what are the npv and irr of the project : Anderson International Limited is evaluating a project in Erewhon. The project will create the following cash flows.

Compute amelie deduction : Amelie is an employee who uses her personal automobile in connection with her job. Compute Amelie's deduction before the 2% of AGI floor

How much will he be able to withdraw each year : Your great-uncle Claude is 82 years old. Over the years, he has accumulated savings of $80,000. He estimates that he will live another 10 years

What type of assurance is provided on financial statements : What type of assurance is provided on financial statements prepared a special purpose basis of accounting other than generally accepted accounting principles?

Savings account earning a compound annual interest rate : How much will $1,000 deposited in a savings account earning a compound annual interest rate of 6 percent be worth at the end of the following number of years?

User Account

All Pages