Question

Q. Consider the following table of cash flows years 0 1 2 3 4 5 6...

Q. Consider the following table of cash flows

years 0 1 2 3 4 5 6 7 8

Interest 4.7% 4.3% 5.5% 5% 4.7% 9% 11% 5.6% 4%

Cash flows -150000 18000 32000 34000 -22000 12000 5000 3500 8000

You are required to calculate

1.     Present value

2.     Future value

3.     Internal rate of return

Cash flows occur at the end of the year

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Homework Answers

Answer #1

Formulas Used :-

Present value=B108/(1+C108)^A108

Future Value=B108*(1+C108)^A108

IRR=IRR(B108:B116)

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