What is the irr of the project

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1. Project Salerino has the following cash flows: CF0 = -100, C01 = -10, C02 = 550, C03 = 570, C04 = -20. What is the PV of only the costs to Salerino if the cost of capital is 0.09?

2. A firm invests in a project that will produce a steady yearly savings of $6,700,000 starting one year from now. The investment needed for the project is $107,000,000. What is the IRR of the project?

3. A firm invests in a project that will produce a steady yearly savings of $5,000,000 starting one year from now for 30 years. The investment needed for the project is $100 million. What is the IRR of the project? (Hint: The savings are an annuity, so you have to use the Annuity feature in your financial calculator to find the discount rate/rate of return/IRR. Not to worry about multiple IRRs as there are no large investments in the future.)

4. A firm invests in a project that will produce a steady yearly savings of $107,000 starting one year from now. The investment needed for the project is $839,000. The required rate of return is 8%. What is the NPV of the project?

Reference no: EM133069638

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