What is your estimate about the irr of project

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Reference no: EM131923915

At what annual rate would the following have to be? invested?

a. ?$500 to grow to ?$1,569.21 in 12 years

b. ?$310 to grow to 617.69 in 8 years

c. ?$49 to grow to $592.92 in 22 years

d. ?$200 to grow to 267.65 in 5 years

(Round to the nearest whole? percent.)

2. Lepton Industries has a project with the following projected cash flows: Initial Cost,

Year 0: $468,000

Cash flow year one: $135,000

Cash flow year two: $240,000

Cash flow year three: $185,000

Cash flow year four: $135,000

Plot the NPV profile of this project in Excel. Start with discount rate equal to zero and increase the discount rate by 2% increments until discount rate equal to 30%. For what discount rates would Lepton accept this project? For what discount rates would Lepton reject this project? What’s your estimate about the IRR of this project?

Reference no: EM131923915

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