What would be the project irr using above data

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Reference no: EM131926468

Frost Company forecasts the launch of its new product with the following projected cash flows for each year. Initial investment in the project (including working capital) is $50,000. No salvage value at the end of the project.

Year Cash Flow Amount

1 $22,500

2 $21,000

3 $12,000

4 $8,500

1. Using an opportunity cost of capital of 12%, what is the Net Present Value? [Excel Formula = NPV]

[Hint: NPV of Cash Flows – Initial Investment = Net Present Value]

2. What would be the project IRR using the above data? [EXCEL Formula = IRR]

Reference no: EM131926468

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